A proposed new High Street bank, Metro Bank, which places special emphasis on giving a welcome for dog owning customers, has been given a banking licence by the Financial Services Authority (FSA).  The bank plans to open two branches in central London in the next three months, with a plan to expand to more than 200 across the capital within ten years.

"The banking environment was fundamentally changed following the credit crunch, and we have seen seismic changes in the retail UK banking industry as a result," said Anthony Thomson, Metro Bank chairman.

"With the FSA authorisation of Metro Bank we are entering a new era of banking, one where we go back to a more traditional banking model where customer service is key and there is deposit based lending."

Among the executive and non-executive directors of Metro Bank are people with extensive senior experience at other financial institutions such as RBS, HBOS, Anglo Irish Bank, Barclaycard, Bank of America and the Nationwide Building Society.

The co-founder of Metro Bank, along with the chairman Anthony Thomson, is Vernon Hill, who built up a bank on the East Coast of the USA called Commerce Bank, which started with one branch in 1973 but eventually grew to 500 branches. He is currently the chairman of the US pet insurer Pet Plan America, which perhaps accounts for Metro Bank's friendly attitude to pets. "A friendly welcome to dogs and their owners, with water bowls and dog biscuits on hand for man's best friend - dogs rule at Metro Bank!" said the bank's announcement.