Financial Times article highlighting Metro Banks accounting mishap that recently took place. The mistake Metro Bank claimed was, it had misclassified large numbers of commercial loans when calculating risk-weighted assets (Jenkins, 2019). This meant that the bank did not have the expected capital to put up against the high-risk assets (Jenkins, 2019). The companys CEO, Craig Donaldson stated that the mistakes were identified after end-of-year reviews were conducted (Jenkins, 2019). However, the issues were brought to their attention earlier by Bank of England regulatory officials meaning that the issue should have been corrected but was left untouched until now (Jenkins, 2019). The biggest consequence of this mishap has been negative feedback from shareholders asking for a change in management due to the oversight that was allowed to happen (Jenkins, 2019). In order to amend this issue moving forward, Metro Bank is now, in the process of applying for permission to use a new type of model to calculate risk-weightings that would ultimately allow it to have less capital against its loans (Jenkins, 2019). Even with this attempt to improve, Metro Banks risk management team and overall leadership is in question which in turn hurts the companys reputation (Jenkins, 2019). The biggest frustration to take away from this is that Metro Bank had been informed but chose not to act when regulators addressed the issue. If they had been more diligent internally along with complying with regulatory bodies, Metro Bank may have avoided the issue altogether.

For chegg tutor, in your responses to the above post, confirm or challenge the above recommendations for improving accounting quality and offer additional recommendations. Discuss whether you think this may indicate a trend in regard to accounting quality (or a lack thereof). Ask question if need? Also, I am kindly asking to respond with no plagiarism