• Home
  • About
  • 151 IMPACT AWARDS
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

Impact Awards –>
  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Bank backed by Warrington council wins approval from regulators

0
  • by Colin Marrs
  • in 151 News · Treasury
  • — 12 Apr, 2017

Lynton Green and Cllr Russ Bowden of Warrington

A bank in which a North West local authority has taken a 33% stake could launch as early as the summer after clearing a major set of regulatory hurdles.

In January, Warrington Borough Council approved plans to invest £30m to help create a joint venture, Redwood Bank.

Now the bank has entered its “mobilisation phase” after receiving a banking license following approval from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).

Danny Mather, corporate finance manager at Warrington, told Room151: “Redwood Bank has been granted a ‘restricted banking licence’ which means that it can currently only raise deposits up to £50,000 in total.

“It will therefore now go through what’s called a ‘mobilisation phase’.

“During this phase, the bank’s IT systems and associated infrastructure will be introduced-to enable it to then be able to subsequently offer its lending and deposits products to SME customers.”

In addition, Redwood Bank will also recruit further staff and finalise its policies, procedures and processes.

Mather said: “It is anticipated that this will take a number of months, with the objective being to complete mobilisation and then open the bank sometime during this summer.”

During the mobilisation phase, the banks’s business development teams will talk to brokers and customers about potential lending deals that may be possible post-launch.

When the bank is ready, further approval will then be required from the PRA and FCA to remove the current restrictions on its banking licence, and remove deposit limits.

Warrington Borough Council’s executive board member for corporate finance, Russ Bowden, said: “This is a really important deal for Warrington and part of our commitment to innovative financial approaches which support growth and sustainability in the borough.

“We see our stake in the company as an investment in our future. It’s about investing in our local economy, helping businesses thrive and generating income which will enable us to protect council services.”

The bank is now expected to announce a number of senior board-level management appointments over the coming weeks as it gears up for launch.

It will have a northern regional office based in Warrington. The council hopes the bank will allow it to help more businesses than by authorising loans directly.

The Warrington deal is understood to be the first time a council has used treasury money to invest in a bank.

The structure has been influenced by Cambridge and Counties Bank, established in 2012 as a joint venture between University of Cambridge’s Trinity Hall and Cambridgeshire Pension Fund.

Jonathan Rowland, co-founder of Redwood Bank, said: “With the opportunities being created by Brexit and the financial services sector’s rehabilitation, this is a great time to be entering the market.

“This is a unique public-private partnership that heralds a return to community banking in the UK.”

Get the Room151 Newsletter

Share

You may also like...

  • ESG in liquidity 13 Jan, 2021
  • Leeds strikes deal with government over rising PFI schools costs Leeds strikes deal with government over rising PFI schools costs 19 Jun, 2019
  • PWLB consultation: Big change on the way but there are ‘grey areas’ and opportunities 14 Dec, 2020
  • David Green: How to set an inter-authority loan rate David Green: How to set an inter-authority loan rate 14 May, 2018

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 16 hours ago

    Impact Awards: Liverpool’s cafe culture and Warrington’s investment in homes: The CCLA/Room151 Impact Awards showcase  finance teams with a direct impact on their local communities and the environment. This week we spotlight Liverpool City Council’s… dlvr.it/RxJsKb pic.twitter.com/dEYpaz6HP0

    Room151 19 hours ago

    Doing something in #localgov #finance for housing or regeneration? Check out the 'Place Shaping' category room151.co.uk/impact-awards/… sponsored by @31tenConsulting in the CCLA/Room151 Impact Awards. #timetoenter !! pic.twitter.com/dU99vE6Wws

    Room151 2 days ago

    Doing something in #localgov #finance for Adult Social Care & Health? Check out the ASC&H category room151.co.uk/impact-awards/… sponsored by Fundamentum Social Housing REIT in the CCLA/Room151 Impact Awards. #timetoenter !!

    Room151 2 days ago

    Doing something in #localgov #finance for the environment? Check out the 'carbon management' category room151.co.uk/impact-awards/… sponsored by @ACSLLP in the CCLA/Room151 Impact Awards. #timetoenter !!

    Room151 2 days ago

    So what are the seven categories for the CCLA/Room151 Impact Awards? Here they are room151.co.uk/impact-awards/… #localgov #finance #outcomes

    Room151 2 days ago

    Why should LGPS be concerned about rising inflation?: The impact of the coronavirus pandemic, lockdown and wider economic uncertainty created  deflationary pressures which raise important considerations for the Local Government Pension Scheme writes… dlvr.it/RxF7Fs pic.twitter.com/JlcjROBIpz

    Room151 2 days ago

    JOB ALERT: LPFA Finance Director vacancy: London Pensions Fund Authority Finance Director and s151 Officer Competitive salary and benefits The largest Local Government Pension (LGPS) provider in London with around £6.5 billion of assets and 135[...] dlvr.it/RxBdJP

    Room151 3 days ago

    Richard Harbord: Further signs that local government finance is failing: The crisis in Liverpool and a fix for education budgets are further indication that local government finance is in need of a root and branch review. Even for those students[...] dlvr.it/Rx9PSV pic.twitter.com/sAanC2gEyu

    Room151 1 week ago

    Impact Awards: Finance helps launch school meals company and support business during lockdown: The CCLA/Room151 Impact Awards will showcase the way finance teams have a direct impact on their local communities and the environment. This week we spotlight… dlvr.it/RwnlF4 pic.twitter.com/AJhne1MVG4

    Room151 1 week ago

    "This work has made a vital, practical contribution to ensuring people have been supported through the pandemic." #impact #151awards #covid #s151 room151.co.uk/treasury/impac… #impactcasestudies #councilfinancemakesadifference

    Room151 2 weeks ago

    room151.co.uk/impact-awards/ #passiton #localgov #s151 #151awards pic.twitter.com/A0uO0dwBkM

    Room151 2 weeks ago

    Financial pressures loom for 2023 and beyond: Kate Ogden writes the government has addressed most of the short-term Covid-19 financial pressures facing English councils, but problems loom in 2022-23 and the years following. As we enter the[...] dlvr.it/RwfDsz pic.twitter.com/hpv2R09w75

    Room151 2 weeks ago

    Calling all #localgov finance officers and #s151s room151.co.uk/impact-awards/ It's the #151Awards Thanks to the @LGALocalism for helping us get the word out along with all the LA treasury societies. pic.twitter.com/Nkal9BrH1J

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Councils mount defence as TaxPayers’ Alliance takes aim at pay
  • Next story News round-up: New section 151 officer at RBKC, Wales’ EU funding, IR35 warning

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.