Metro Bank told to beef up its board

SCANDAL-HIT Metro Bank is said to face growing pressure from the City watchdog to shake up its board after an accounting error.

The lender faces calls to appoint more independent directors, amid concerns that billionaire founder and chairman Vernon Hill has too much power.

Metro’s shares have crashed almost 50pc this year following revelations it had underestimated the riskiness of some property loans.

The bank has promoted senior independent director Ben Gunn to deputy chairman.

But the plan has sparked concern at the Financial Conduct Authority because Gunn has already spent more than nine years on Metro’s board, in breach of City guidelines. Top Metro investors are also pushing for change over fears there is not enough oversight of US tycoon Hill.

One investor told the Financial Times: ‘This is a real test for the regulators.’