Metro Bank, the UK’s challenger bank, has experienced a significant decline in its shares, dropping by 23% in early trading following reports that it is seeking to raise millions to strengthen its financial position. Various newspapers have suggested that the bank aims to raise £600m.

While Metro Bank did not confirm the reported figure, it acknowledged ongoing discussions about optimising its capital resources. The bank, established in the aftermath of the financial crisis as the first to open in the UK in over a century, positioned itself as a challenger to established high street names and currently serves around 2.7 million customers.

The recent share plunge comes after a setback last month when regulators declined to approve a request to lower the capital requirements for its mortgage business. Metro Bank is reportedly exploring various options to enhance its balance sheet ahead of the refinancing of approximately £350m worth of debt next October.

Rating agency Fitch placed Metro Bank on negative watch, expressing concerns about its capital strength, funding, and business model.

In a separate development, the UK’s cloud computing market is set to undergo a competition probe initiated by media watchdog Ofcom. The investigation arises from concerns that the sector is dominated by Amazon and Microsoft, constituting 70-80% of the market, while Google, the closest rival, holds 5-10%. Ofcom, citing worries about limited competition hindering businesses from switching providers, has referred the matter to the Competition and Markets Authority (CMA). The cloud services market in the UK was estimated to be worth up to £7.5bn in 2022, with the probe aiming to ensure fair competition in the industry.