Business lending probe

BOSSES of a fund that handed £120m to scandalhit Metro Bank face being hauled before Parliament to explain their decision.

The Banking Competition Remedies set up by the Treasury to provide £775m to small lenders to encourage competition has been slammed for aiding Metro, whose share price crashed because it miscalculated the riskiness of some loans.

Metro’s error was discovered by the Bank of England staff and not internal staff, as Metro originally claimed.

An inquiry into what happened is due to be launched by MPs on the Treasury Select Committee.