The Co-operative Bank
Retail and commercial bank in the United Kingdom / From Wikipedia, the free encyclopedia
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The Co-operative Bank plc is a British retail and commercial bank based in Manchester, England. Established as a bank for co-operators and co-operatives following the principles of the Rochdale Pioneers, the business evolved in the 20th century into a mid-sized British high street bank, operating throughout the UK mainland. Transactions took place at cash desks in co-op stores until the 1960s, when the bank set up a small network of branches that grew from 6 to a high of 160. Branches for residents of the Isle of Man and the Channel Islands were closed in the 2010s during a significant rescaling exercise. As of 2023[update] it has 50 branches in the UK.[3]
Formerly | CWS Loan and Deposit Dept. |
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Company type | Public limited company |
Industry | Banking & finance |
Founded | 8 November 1872 (8 November 1872) |
Headquarters | Manchester, England, UK |
Number of locations | 50 (2024) |
Key people | Nick Slape (Chief Executive Officer) Bob Dench (Chairman) |
Products | Commercial banking Credit cards Loans Mortgage loans Retail banking |
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Total assets |
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Owner | The Co-operative Bank Holdings Ltd |
Number of employees | 3,350 (2019)[1] |
Divisions | Smile |
Website | www |
Footnotes / references [2] |
The Co-operative Bank is the only UK high street bank with a customer-led Ethical Policy which is incorporated into the bank's articles of association.[4] The Ethical Policy was introduced in 1992 and incorporated into the bank's constitution in 2013.[5][6] The policy was revised and expanded in 2015 in line with over 320,000 customer responses to a poll. The latest Values and Ethics report was published in May 2020.[7]
Despite its name, the bank has never been a cooperative itself. In the 1970s it was registered as a separate PLC that was wholly owned by the co-operative society it was part of, in order to achieve its status as a bank among other banks entitled to use inter-banking systems. That society, The Co-operative Group, maintains some relationship with the bank today,[when?] including managing the licensed use of the brand name "Co-operative ..." and maintained full and later partial ownership until 2017.[8]
In 2013–14, after a merger with Leek-based Britannia Building Society, a failed attempt to buy a larger rival and a troubled commercial property loan portfolio, the bank was the subject of a rescue plan[9] to address a capital shortfall of about £1.9 billion.[10] Representatives of the bank's then 12.6 million co-owners[clarification needed] and management dealt with a crisis by negotiating with creditors to exchange their claims on the bank's liabilities for equity in a debt-for-equity swap.[citation needed] This swap reduced the bank's liabilities while increasing its ability to withstand the significant losses which had rapidly become apparent. It was a private transaction and thus avoided the part-nationalisations that befell larger rivals in UK, USA and elsewhere in the 2008 global financial crisis.[citation needed]
The Co-operative Group, which had previously owned the bank outright, became a minority shareholder[8] holding a 20%[11] stake in the bank.[12] Following restructuring and the formation of a new holding company on 1 September 2017, the Co-operative Group no longer had a stake in the bank[13] and the relationship agreement between the two organisations ended in 2020.[14]
The bank is now a plc with debt securities listed on the London Stock Exchange. Its equity is not listed. The bank's sole shareholder is the Co-operative Bank Finance plc. The sole shareholder of the Co-operative Bank Finance plc is the Co-operative Bank Holdings Ltd which is a private company limited by share capital.[15][16] The holding company is owned by hedge funds and other asset management companies,[17] though talks are ongoing with the Coventry Building Society on their acquisition of the bank.[18]