Local government pension fund sets up bank with Cambridge college

The Cambridgeshire Local Government Pension Fund has teamed up with one of Cambridge University’s colleges to set up a new bank focused on secured lending to small and medium-sized enterprises (SMEs).

The Cambridge & Counties Bank, to be jointly owned by the fund and Trinity Hall, will hold assets brought from a former bank.

Cambridgeshire County Council Leader Nick Clarke, who is to act as a non-executive director of the new bank, said: “The new bank will give local SMEs a real boost and the chance to grow, at a time when it’s proving hard to secure funding even for viable business propositions. This venture will not only produce a good return for the pension fund, but also mean that money from public services pensions is being used to support the economy, create jobs and improve the quality of life for our communities.

“The return on investment will reduce the burden on local taxpayers and leave more money available for frontline services. The bank has been properly assessed and is a very good investment. I am really pleased that we are taking a lead here and investing with Trinity Hall in this exciting opportunity."

The new bank, which will be led by chief executive Gary Wilkinson, has been formally authorised by the FSA. 

In addition to offering loans secured against commercial property, it will provide deposit accounts and secured pension scheme lending.

The bank will also develop plans for professions financing, and savings accounts in the retail and non-retail sectors.

The Cambridgeshire Local Government Pension Fund has more than 170 member organisations.

Paul ffolkes Davis, Bursar and Steward at Trinity Hall, said: “We regard Cambridge & Counties Bank as an unprecedented opportunity to marry a strong investment promising good returns with support for small businesses at a time when they need it most.”