11 November 2009

Government announcement of initial capitalisation of the Social Investment Wholesale Bank - Social Enterprise Coalition response

We welcome news that agreement has been reached to release capital from dormant bank accounts for the establishment of a Social Investment Wholesale Bank, the function and design of which was the subject of an Office of the Third Sector consultation earlier this year. 

We are disappointed, but unsurprised, that the figure of up to £75 million is significantly lower than the £250 million founding capital originally proposed.  However, we remain supportive of the overall vision of a wholesale institution, which is something the Coalition has long argued for. 

The Bank should be structured and run in such a way that it works with existing intermediaries and does not cause market distortion or displacement.  In light of its reduced capacity it is now even more important that the funding be used to focus on supporting investment in social enterprises which present the greatest opportunity to create sustainable, long term social and environmental impact as well as a financial return.

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