Warrington council is to spend £30m on buying a 33% stake in a new bank in order to lend more to small businesses.
In 2013, a Supporting the Local Economy Policy Committee looked into the availability of funds in Warrington for small- and medium-sized businesses.
The committee recommended the council look into setting up a bank to help meet the needs of these local businesses.
The borough council will invest in a new Challenger business bank that hopes to gain a banking licence from the Bank of England in the first quarter of 2017.
This will be a joint venture bank - known as Redwood Bank - between the council and the owners of an established bank, an unnamed ‘major city financier’. If it is granted a banking licence, Redwood will be launched in August.
