The chief executive of the banking group that owns Coutts has apologised to Nigel Farage for “deeply inappropriate” comments about him as his account was closed.
The former UKIP and Brexit Party leader claimed the bank took the action to close his account because his views did not align with the firm’s “values”.
Reports had suggested it was down to his finances not reaching the companies threshold.
Earlier this week, Mr Farage claimed to have a 40-page document that proved Coutts “exited” him because he was regarded as “xenophobic and racist” and a former “fascist”.
Coutts hit back claiming it did not close accounts “solely on the basis of legally held political and personal views”.
But the chief executive of the Natwest Group, Alison Rose has now apologised to him for “deeply inappropriate comments” made about him in documents prepared for the company’s wealth committee.
She insisted the remarks did “not reflect the view of the bank”, adding: “I believe very strongly that freedom of expression and access to banking are fundamental to our society and it is absolutely not our policy to exit a customer on the basis of legally held political and personal views.”
The NatWest Group had come under political pressure in recent days over the matter.
Mr Farage said the apology was only "a start", as he pledged to keep on campaigning amid a political furore over the closure of bank accounts and freedom of speech.
He hit back at the bank boss, who is also a member of the Prime Minister's new Business Council, and accused her of being forced into an apology by the Treasury.
"In life it is always good to get an apology, so thank you Dame Alison for apologising. What I've actually been told quietly, privately, is that you were forced into doing this by the Treasury.
"But at least you've done it, I suppose. But the whole letter smacks of 'not me, guv, I mean I'm just the chief executive, I mean, don't blame me for what the banks under my direct control are doing"'.
He said that there were thousands in the same position as him, as he vowed to battle on.
"I'm afraid I can't just walk away from this. I've started this, and I've got to continue. So thank you for the apology. It's a start, but it's no more than that."
Meanwhile ministers will make it harder for banks to close accounts after the dispute between ex-UKIP leader and Coutts.
Banks will be required to explain and delay any decision to close an account under the new rules, the Treasury said.
Customers will also be able to challenge account closures more easily, it added on Thursday.
Under the new rules, banks will have to give a notice period of 90 days before closing an account, giving account holders more time to appeal against the decision.
They will also have to spell out why they want to close an account, making it easier for customers to challenge closures.
Andrew Griffith, the economic secretary to the Treasury, said: “Freedom of speech is a cornerstone of our democracy, and it must be respected by all institutions.
“Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely.
“These changes will boost the rights of customers – providing real transparency, time to appeal and making it a much fairer playing field.”
Nigel Farage has said the threat of being ‘de-banked’ over their views could prevent people from going into public life.
He said: “Refusal to open (bank accounts) and closures have happened to several members of my family.
“Which is perhaps, above all, what has made me angry, really angry and motivated me to do this.
“It’s tough enough for individuals to go into public life and take the stigma that goes with it…
“But if it’s now going to have a huge effect on your family and close friends, why would anybody of any calibre want to go into public life in our country?
“I mean, this really matters.”
