Start-up banks target building society arms to gain licences
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Bank start-ups are seeking to buy up building societies’ subsidiaries in a bid to use their existing banking licences as a faster route to market.
The Daily Telegraph reports that Walton & Co, the lender being set up by Panmure Gordon analyst Sandy Chen, is in exclusive talks with National Counties Building Society over the potential acquisition of the Hampshire Trust Bank, which has a standalone banking licence.
Meanwhile, Manchester Building Society is reportedly in exclusive talks with a secret bidder hoping to acquire Whiteaway Laidlaw, a subsidiary which also has a licence.
In January, Virgin Money acquired Church House Trust to use its existing banking licence in a £12.3m deal.
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Readers' comments (1)
Julian Stevens | 13 Apr 2010 11:13 am
Maybe these new banks will offer mortgages and business loans on affordable and sensibly underwritten terms in place of the mainstream banks, most of which seem extremely reluctant to do so in spite of what the government says it's trying to make them do.
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