GB Bank scoops restricted banking licence for property lending
GB Bank will dish out loans of between £1m and £5m to property developers in the North of England.
Another challenger bank has bagged itself a banking licence.
The Newcastle-based challenger bank hopes to support property developers across the North East, Yorkshire and North West and address the regional gap in funding.
“As the UK recovers from the pandemic it is becoming even more important that we improve the provision of finance to small businesses,” Paul Rippon, Chairman of GB Bank and Monzo co-founder, said.
“Obtaining our provisional banking licence is a real testament to what the team has delivered so far, and I believe with our experience and expertise we are strongly placed to bring about real change to this market.”
GB Bank is aiming to lend £3bn over five years and build a balance sheet of more than £1bn and will provide loans of between £1m and £5m to support regional SMEs.
“This is a landmark day for GB Bank, bringing to fruition the hard work of our team to build a new specialist bank that provides much needed financial support to property developers in underserved regions, as well as savings rates that the UK public will love,” Sue Hayes, CEO of GB Bank, added.
With its new banking licence, any money held in GB Bank’s savings accounts will be protected under the Financial Services Compensation Schemes (FSCS).
In 2020, GB Bank secured £20m in funding from the Teeside Pension Fund (TPF) and has now raised an additional £28m from the regional pension fund.