The high street lender is struggling to pay for its debts

The Bank of England is considering a further intervention into the Co-operative Bank that could lead to the lender being wound up before the end of the year.

John Worth, the finance director of the loss-making bank, warned investors in a brief statement last Thursday that it was set to fall short of the capital targets it had agreed with the regulator.

The bank’s executive team is now scrambling to submit a new restructuring plan to the Bank of England to buy more time. However, the repayment of a £400m bond due this September could complicate matters, City sources said.

The Co-op bank has sufficient cash to repay the bond but will struggle to raise a new bond to replenish its finances. It would be