Community Bank plan from Preston City Council to apply for banking licence

Plans to establish a Community Bank in the North West have been approved by Preston City Council.

The backing will allow North West Mutual Bank, a joint venture between local authorities in Preston, Liverpool and the Wirral, to begin the process of applying for a banking licence.

It will also see steps made in establishing North West Mutual Bank, successfully registered with the Financial Conduct Authority in May 2020, with the required trademarks and other intellectual property required to operate as a bank.

Councillor Freddie Bailey, Cabinet Member for Community Wealth Building at Preston City Council, said: “This is an exciting step in our project to bring Community Banking to the North West.

“With many high street banks closing it’s an important time to offer local people and businesses an alternative that will put people over profit and reinvest funds into our communities.

“We are pleased to be working with other local authorities in the region to get this project off the ground which will play a key role in giving small enterprises in the region the kick start they need to succeed.”

The announcement comes following the launch of Community Wealth Building 2.0, a commitment by Preston City Council to continue building a democratic economy in the city.

The Community Bank plays a key role in this work and will strive to address regional inequalities and provide services and support to a diverse range of business and community ventures in the region.

Councillor Martyn Rawlinson, Cabinet Member for Resources and Performance at Preston City Council, said: “Small businesses have felt the effects of the pandemic most and will need support to bounce back and thrive.

“By working with a Community Bank, small businesses and community focused projects can get the best services and advice from an organisation that understands their work and the communities they serve.

“As we look to rebuild from the pandemic it is important that we place people above profit and take bold and innovative action to bring real social value to the places we live by investing in small businesses and community projects that give back to their communities.

“The Community Bank is an important step in this journey.”

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