Co-Op Bank to stop business loans
| 24 May 2013 12:12 |
| Britain's Co-operative Bank is to stop lending to new corporate customers as it seeks to repair a major hole in its finances - dealing a blow to efforts to ease the borrowing squeeze on small businesses. |
| The move comes after credit ratings agency Moody's downgraded the Co-op to junk status, forcing it to issue a statement that it did not need to be rescued by the UK taxpayer. |
| It is seeking to rebuild its capital strength amid reports that it is facing a £1 billion sterling shortfall, with regulators forcing banks to hold more cash as a buffer against future crises. |
| The bank has begun trying to shore up its finances by disposing of assets such as its life and general insurance businesses. It also pulled out of a deal to buy more than 600 Lloyds banking branches. |
