Former Ukip leader obtained report suggesting media coverage of his political views was considered in Coutts closure decision

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Dame Alison Rose, the chief executive of NatWest Group, has stood down after a row over the closure of Nigel Farage’s bank account with the private bank Coutts, which NatWest owns.

Rose has resigned from the banking group after the former UK Independence party leader complained to the BBC about a report that claimed his accounts with Coutts were closed for commercial reasons. The broadcaster has since apologised and amended its story.

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The minister in charge of overseeing the UK’s financial services has said that “it is right” that Alison Rose has resigned from NatWest Group, calling the closure of Nigel Farage’s bank account “unacceptable”.

Andrew Griffith, the City minister, said the resignation “would never have happened” had NatWest Group’s subsidiary, Coutts, not withdrawn the account “due to someone’s lawful political views”.

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The City regulator has said it has contacted the owner of Coutts bank amid a growing row over its decision to close Nigel Farage’s accounts, but told MPs that while lenders cannot discriminate against customers, it is ultimately up to firms to decide who to do business with.

It came as the prime minister, the home secretary and the City minister waded in to the growing debate over the rights of lenders to shut or refuse accounts based on concerns over customers’ political views.