Bank of London under investigation by PRA amid financial uncertainty and governance overhaul

The Bank of London, a self -emerging company, has once claimed that the situation of Unionon just four years ago, has revealed that it was under investigation by the Brick Organization Authority at the Bank of England (PRA) and facing questions about its long -term validity.

In the long -delayed accounts for the year 2023, the clearing bank revealed that PRA is studying “some historical matters” at work and put them under “improvement organizational supervision” due to the shortcomings in its financial and regulatory reports. The external bank auditor, EY, issued a qualified opinion on the concerns associated with the evaluation of the employee participation option.

The revelation lies in a turbulent period of the London Bank, which was forced to reduce its working power by half last year amid a severe financing crisis. Although capital injection was secured at a value of 52.1 million pounds, led by Managerv Capital in August 2023 – followed by an additional 3.7 million pounds – the company warned of “material uncertainty” about its future financing, which raised its fears of its position as a constant disturbance.

The bank exploded to the scene in 2021 with noble ambitions to disrupt the UK bank infrastructure and more efficient transactions. Only the second new clearing bank has been launched in Britain 250 years ago, and has received a rating of $ 1.1 billion, supported by investors who gave it a unicorn position.

High -level names such as Lord Mandson, the UK Ambassador is now in the United States, and Harvey Schwartz, the current CEO of the Special stock giant Carlyle, held a directorate. They both stepped down last October amid wider behavior that led to the company’s financing problems. The founder Anthony Watson, who previously held the position of CEO, came out of the work.

The bank’s workforce, which was nearly 200, is about 100, after a restructuring led by the new CEO Christopher Horn.

A Bank London spokesman confirmed that PRA’s investigation is related to events before Mangrov and that work is completely cooperating with the organizers. PRA refused to comment.

Despite the audit, the bank insists that it entered a new stage of stability. Another commitment of 25 million pounds has been secured from Mangrove Capital Investors recently, and the company claims that it “has begun a comprehensive transformation”, including a new governance framework and a rebuilt framework council aimed at restoring confidence.

The bank also faced questions last September after it was revealed that HM Revenue & Customs had provided a petition for an unpaid tax. Since then this issue has been resolved.

The total pre -tax losses at Bank London reached 12.4 million pounds in 2023, after a loss of 12.8 million pounds in the previous year.

After it was described as a major competitor in the UK bank scene, Bank London now finds the same to move in organizational scrutiny, invested uncertainty, and reputation damage. Whether the latest leadership repairs and fresh capital injections are sufficient to install the ship still should be seen.