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Your Weekly Commercial Awareness Update – w/c 13th May

Your Weekly Commercial Awareness Update – w/c 13th May

Your round-up of the stories that you should discuss at interview this week:

Metro Bank’s shares fall further

Reported by Ruici Lee

UK challenger bank, Metro Bank’s share prices fell by 15% and closed 8% lower on 9 May 2019 Thursday. Investors are slowly losing confidence in the bank for several reasons.

In January 2019, the bank revealed that it had miscalculated the amount of capital it needs to support a number of business loans. A bank requires sufficient capital to ensure that its depositors’ money is safe in the event some of the borrowers default on their loans.

Banks operating with insufficient capital may result in financial crises. Therefore, miscalculation of capital needed is a grave mistake.

The amount of capital a bank needs is calculated by adding – the basic minimum capital calculation based on how much lending a bank has done and in which markets, the regulators assessment of bank specific risk, and the amount needed to support the bank’s future growth.

As a result of the capital miscalculation, Metro Bank announced its intention to sell new shares to raise capital. This sent its shares down by nearly 40% in one day. Ever since this blunder, the bank is under tight supervision by the Prudential Regulation Authority.

While Metro Bank’s business model of operating seven days a week including Bank Holidays is popular among consumers, investors do not share the same confidence.

In addition to issues on the bank’s corporate governance, Metro Bank’s targeted high growth rate at a time when other banks are downsizing is also a cause of concern to investors. Over the last 12 months, the bank’s value has plunged by 85%.

Find out more at BBC.

National Crime Agency issues warning over organised crime

Reported by Nathan Gore

Head of the National Crime Agency (NCA), Lynne Owens, has said that the threat of organised crime is “chronic and corrosive” to the UK, highlighting that organised criminals are killing more citizens per year than terrorism, war and natural disasters combined.

The NCA is the agency charged with apprehending those who pose the most serious risk to the UK.

To combat this “threat”, the NCA is calling for “significant new investment”, to provide it with the necessary funds which would enable it to fund further measures to tackle the problem.

The agency has recently launched its annual national strategic assessment (NSA), which aims to expose and illustrate how organised criminals are exploiting advances in technology to further their illicit activities.

“Against a backdrop of globalisation, extremism and technological advances, serious and organised crime is changing fast and law enforcement needs significant new investment to help combat it,” Ms Owens said.

For more information see the here and here.

Should suicide be held to the civil standard?

Reported by Paige Waters

Suicide is a very controversial topic especially the standard of proof needed for an inquest to conclude suicide. Thus has led to three senior judges ruling that the standard should be lowered and the civil standard should be applied. This means it only needs to be proved that it was ‘more probable than not’.

This decision has been said to have caused deep upset amongst many due to the stigma suicide carries.

Previously, the criminal standard was applied to suspected suicides; thus meaning they had to be ‘sure’.

This ruling came after the death of James Maughan who was found hanging in a cell at a prison in Oxfordshire. Following the hearing of the case, Darren Salter concluded there was not enough evidence for the jury to be sure Maughan intended to kill himself.

Although this could not be definite, Salter allowed them to write a longer narrative conclusion on the balance of probability that he had committed suicide. The jury decided it was more likely than not that he in fact did commit suicide.

Lord Justice Davis has commented on the matter stating: “I conclude that, in cases of suicide, the standard of proof to be applied throughout at inquests, and including both short-form conclusions and narrative conclusions, is the civil standard of proof.”

Read more on the Guardian.

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