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UK Treasury orders independent inquiry into Co-operative Bank

Matt Cardy | Getty Images News | Getty Images

Britain's finance minister George Osborne ordered an independent inquiry into Co-op Bank on Friday, with regulators also considering enforcement action against the lender.

The investigation has been jointly agreed with the Prudential Regulation Authority and the Financial Conduct Authority, the Treasury said in a statement on Friday.

"It will be led by an independent person appointed by the regulators, with the approval of the Treasury," the finance ministry said.

The investigation won't start until it is clear it will not prejudice any actions the two regulators may take, it added.