admitted classifying a portfolio of commercial loans for capital purposes incorrectly, thereby failing to hold sufficient capital to meet regulatory requirements; the error applied to around 10% of its loan book. The miscalculation was identified through a review by the Prudential Regulation Authority (PRA) but Metro Bank erroneously gave the impression that the bank had identified the incorrect classification itself. To correct the error in the capital classification, Metro Bank announced a £350m share issue and said it would reduce its growth plans. It was also reported that the PRA and the Financial Conduct Authority were to investigate the circumstances of the error. In December 2021, the bank was fined £5.38m by the PRA after their investigation, saying that it had "failed to meet the standards of governance and controls expected of it" with regards to the risk weighting and classification of commercial loans. As a result of the admission and the share issue announcement, Metro Bank's share price fell sharply, losing 40% of its value in the month after the announcement and 75% in less than four months. By March 2019, the BBC reported that Metro Bank shares were the second most shorted shares on the UK stock market. Additionally, large depositors began withdrawing funds: Metro Bank admitted that there had been a 4% drop in its deposits in the first quarter of 2019 because of "adverse sentiment". In November 2021, Metro Bank entered talks with the Carlyle Group concerning a possible takeover bid. On 6–8 October 2022, Metro Bank's mobile banking app failed, resulting in its customers being unable to manage their accounts remotely. Services Metro Bank provides banking services to personal and business customers. It is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. Acquisitions and divestitures Metro Bank acquired SME Finance in August 2013, and rebranded the business as Metro Bank SME Finance in May 2014. It was announced in August 2020 that Metro Bank had agreed to acquire Retail Money Market Ltd, a London-based provider of peer-to-peer loans trading as RateSetter. The price would be between £2.5 million and £12 million, depending on performance over the next three years. The purchase was subject to regulatory approval and the agreement of Retail Money Market Ltd shareholders, and was expected to complete in the fourth quarter of 2020. Metro Bank would continue the RateSetter brand and