METRO Bank has been forced to squash rumours circulating on social media platforms such as WhatsApp that it's in financial difficulty.
It comes after the bank admits it's received "increased queries in some stores" about safe deposit boxes held with the bank.
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All 66 branches of Metro Bank around the country allow customers to use safety deposit boxes.
But pictures posted on Twitter over the weekend reveal long queues in some branches, which seem to indicate people withdrawing money and items from safety deposit boxes on mass.
Some have likened the queues to those seen outside of Northern Rock branches at the height of the 2008 financial crash.
Metro Bank says this was a "localised" scare.
Is my cash safe?
UNDER the Financial Services Compensation Scheme (FSCS), cash in accounts held with Metro Bank is protected up to £85,000 per person.
Temporary high balances up to £1million are also covered under the scheme for up to six months from when the amount was first deposited.
This could be where you've come into an inheritance or just sold a house, for example.
So if the bank were to go under, you could get your money back from the FSCS.
Metro Bank adds that items held in safety deposit boxes belong to the owner. So again, if the bank did fail, you should be able to get your items back as the bank can't use them as collateral to pay off creditors.
One customer tweeted yesterday morning: "Long qs in the Metro Bank today to take out their money. Seems a lot of people are spooked about having another Northern Rock on their hands.
"Be interesting what Metro does to counter people panicking".
Another Twitter user wrote: "Why is there massive queues in Metro Bank Bromley with people emptying safe deposit boxes and accounts?"
Someone else, whose Twitter profile says they're from London, wrote: "Just walked up my local high street. Long queue outside Metro Bank. Not a good look".
But cash held with Metro Bank is protected up to £85,000 by the Financial Services Compensation Scheme - see the box above for more information.
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A Metro Bank spokesperson told The Sun: “We’re aware there were increased queries in some stores about safe deposit boxes following false rumours about Metro Bank on social media and messaging apps.
"There is no truth to these rumours and we want to reassure our customers that there is no reason to be concerned.
"We're a profitable bank, rated no.1 for personal current account service by the Competition and Markets Authority and committed to serving our 1.7million customer accounts.”
It comes as the bank's share price has dropped from a high of £35.12 this year to a slump of £5 today.
But LBC's city commentator, David Buik, told the radio station that customers shouldn't panic.
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He said: "It [Metro Bank] requires some extra capital, about £350million, which they are going to have to get from their shareholders to meet the regulatory requirements of the Financial Conduct Authority.
"Unfortunately, as you can imagine, there has been quite a run on deposits which have left the bank.
"But this is not a time for panic. This is a time for a pragmatic outlook.
"Let's hope [chief executive] Craig Donaldson does manage to raise the money quickly and put the matter to bed.
"I suspect the chairman of Metro Bank, Vernon Hill, who's a pretty flamboyant character, may well not be able to stay on as chairman indefinitely."
A Metro Bank spokesperson told The Sun: “We're aware there were increased queries in some stores about safe deposit boxes following false rumours about Metro Bank on social media and messaging apps. "There is no truth to these rumours and we want to reassure our customers that there is no reason to be concerned.
Metro Bank was ranked eighteenth out of 18 current account providers in our independent 2023 customer satisfaction survey. Its users gave the bank 3 out of 5 stars and 65% said they'd recommend the current account service.
Losses totalling £627 million in the past three years have sapped Metro Bank's strength. Its shares have tanked 30 per cent in the past month alone in the wake of the collapse of Silicon Valley Bank and rescue of Credit Suisse by UBS.
However, it was rocked in 2019 by an accounting scandal after misreporting assets used to calculate how much capital it needed to hold. The scandal prompted the biggest single-day collapse in a UK bank's share price since the global financial crisis a decade earlier.
On 22 December 2021, the PRA published a Final Notice against Metro Bank and imposed a penalty of £5,376,000 for failings associated with the Bank's RWA reporting to the PRA.
Metro Bank PLC is an independent UK Bank - it is not affiliated with any other bank or organisation (including the METRO newspaper or its publishers) anywhere in the world. "Metrobank" is the registered trademark of Metro Bank PLC.
There are a few different ways you can pay money into your Metro Bank account, the fastest being a payment from one bank to another. You can also deposit a cheque or pay cash* into your account at your nearest store.
London-based Metro Bank said on Thursday the majority of the loan loss-related provision was due to a 33 million pounds ($39.54 million) increase in impairments on loans to consumers, although the lender added it was yet to see any signs of significant distress among customers.
For added security, Metrobank will set a daily limit for bill payment transactions at PHP 250,000 per account starting April 14, 2023. This means that you can pay bills of up to PHP 250,000 daily on Metrobank online banking platforms.
The loan was made by Metropolitan Commercial Bank to CEO Mark DeFazio on March 6, four days before the collapse of Silicon Valley Bank unleashed the crisis that continues to roil banking.
The maximum cash deposit (with debit card or barcode) is £10,000 at any one time. There may be lower limits at individual Post Offices. Speak to your Relationship Manager or check at your local Post Office for more details. ... Charges.
You'll need the recipient's full name and bank account number to complete the deposit. Some banks are banning cash deposits into someone else's account, though. Handling cash can lead to fraud, so banks are steering clear.
You would have set up your Magic Word or received it in the post when you opened your account. To set up a new Magic Word, you can: Visit a Metro Bank store.Personal customers can call 0345 0808 500, 24 hours a day, 7 days a week - you will then receive your Magic Word in the post, which will take 3 to 5 days.
It is because of their continued support, that we have been ranked as the Strongest Bank in the Philippines by The Asian Banker.” The Asian Banker Strongest Banks ranking is based on six key areas of balance sheet performance: scalability, balance sheet growth, risk profile, profitability, asset quality, and liquidity.
With Metrobank, your personal data and payments are always protected as all cards come with a unique ATM PIN, One-Time Password (OTP), and EMV chips for added layers of security.
As of December 2022, 48.1% of the company is publicly owned, where 48.0% belong to GT Capital Holdings, Inc., and 14.7% to the Ty family and other related parties. Metrobank (MBT) has been listed on the Philippine Stock Exchange since 1981.
Banks don't know the contents of these boxes, so you'll be able to open and sort through yours in private. You can't keep just anything in a safe deposit box; most rental agreements forbid storing items such as firearms, drugs and hazardous materials.
It's a good idea to keep a small sum of cash at home in case of an emergency. However, the bulk of your savings is better off in a savings account because of the deposit protections and interest-earning opportunities that financial institutions offer.
Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.
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