The Co-operative Group said on Monday that it had agreed a plan with Britain's financial regulator to plug a capital shortfall of 1.5 billion pounds ($2.4 billion) at its banking unit.
Co-op said it agreed a comprehensive plan to generate capital and provide stability for the Co-operative Bank . It said the plan would generate 1 billion pounds of new capital this year and 500 million pounds in 2014.
Co-op said its core tier 1 ratio, a key measure of the bank's financial strength was expected to be above 9 percent by the end of 2013 and to increase in the following years.
"We have put in place a detailed and comprehensive solution to meet the current and longer-term capital requirements of the bank. In doing so we have agreed a plan to insure its future," said Chief Executive Euan Sutherland.
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