Grants / Projects we are funding

Testing the local lender hypothesis: Demos

Grant details

Amount:£56,000

Awarded on:01/03/2014

Status:Closed

Area of interest

Local economic resilience

The aim of the project is to test the hypothesis that regional banks would be good for UK growth, stripping back the debate about local banking to ask what we want regional type banks to do that the current system fails to provide, and the best methods for delivering this.

What is the issue?

The project will explore the potential for local banks to contribute to local economic resilience. This follows call for reform of the banking system to improve the supply of affordable credit to households and small businesses – and cross-party political interest in the local banking model.

What will the project to try to achieve?

This project has three core objectives:

  1. To make a tangible contribution to an existing local initiative – the Bank of Salford – through developing an evidence base around the project.
  2. To draw out lessons for other place-based coalitions looking to build local financial institutions in the UK.
  3. To inform national policymaking on banking reform more generally and local banking policy in particular.

Who might be interested in this project?

The project should be of interest to:

  • Organisations and practitioners who are either considering or already involved in establishing local banks in the UK.
  • Local and national policymakers interested in banking reform in general, or the establishment of local banks in particular.
  • Opinion formers interested in banking reform in general, or the establishment of local banks in particular.

 

Update October 2015: The report from this piece of work has been released – click here to download.

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