Jobs have been put at risk after a Manchester-based start-up challenger bank revealed plans to "wind down" after failing to raise the £30m it needed to stay afloat.
Bank North had been founded in 2018 by chief executive Jonathan Thompson and is chaired by former British Business Bank boss Ron Emerson.
The bank had been aiming to disrupt the small business lending market but failed to raised the £30m it needed to secure a full banking licence from the Bank of England, according to a report in the Daily Mail.
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In a letter seen by the publication, Mr Emerson said Bank North had been "unable to close this critical capital raise within the necessary timeline".
He added: "It is therefore with great regret that I have to inform you that… the board of Bank North has decided to initiate a solvent wind-down of the bank, with immediate effect."
The Daily Mail added that the bank is in talks to sell its £17m loan book and transfer its Manchester-based lending team.
Mr Emerson added: "Completion of this transaction is critical to ensuring a solvent wind-down, where the priority will be to ensure full payment of our creditors, including staff, and that all outstanding liabilities are paid."
According to its most recently available accounts, for the nine months to March 21, Bank North made a pre-tax loss of £2.1m.
Bank North has been contacted for a comment by BusinessLive.
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