The property sector across the UK is set for a £3bn boost as specialist bank GB Bank officially launches after receiving its full UK banking licence.
The banking licence allows Middlesbrough-headquartered GB Bank to start driving its ambitious plans forward. It has committed to lend £3bn over five years. The funding will support the creation of over 100,000 jobs, 20,000 new homes and several million square feet of office space.
Savers will also benefit as the bank will offer a range of fixed-term saving products with competitive rates. In addition, savings are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000, and the funds will be directly linked to the local community developments.
Stephen Lancaster, CEO of GB Bank, said: “We are absolutely delighted to officially launch GB Bank! I’m incredibly proud of the entire team’s hard work, which has enabled us to achieve the fantastic milestone of securing our full UK banking licence. Everyone at GB Bank is raring to go and can’t wait to see, first-hand, the positive impact GB Bank will make to the communities across the UK.”
GB Bank has put the renewal and growth of regional communities at the heart of its lending policy. It will provide accessible, bespoke property development loans with competitive fixed interest rates whilst committing to using local professional advisors, encouraging local employment opportunities and driving positive benefits in communities across the UK that need it most.
Paul Rippon, Chairman of GB Bank, said: “GB Bank is bringing something truly unique to the market, and it’s hugely rewarding to know the future of communities across the UK will directly improve due to our work. The funding will build new homes and offices to reinvigorate communities and create jobs supported by secure and competitive saving accounts.
“GB Bank is only the second UK bank to launch this year, which demonstrates how incredibly challenging launching a bank is! The team deserves huge credit, and we are excited about what the future holds.”
The Teesside Pension Fund (TPF) is GB Bank’s cornerstone investor. It has agreed to invest up to £48m to support the bank’s growth plans and its goal of driving economic growth and reinvesting in local communities.
Ben Houchen, Tees Valley Mayor, said: “I am extremely pleased to welcome the launch of Teesside, Darlington, and Hartlepool’s first homegrown bank. The launch of GB Bank is a huge step forwards in levelling up our region, and truly represents the ambition of our area.
The headquarters in Middlesbrough’s Centre Square is already bringing good-quality, well-paid jobs. By bringing the banks HQ to Middlesbrough it shows that you don’t have to leave the place you love and call home to forge a rewarding career in finance and professional services.”
GB Bank will provide property development loans of between £500,000 and £5 million, with lending supporting regional property developers, small and medium-sized businesses, and construction companies.
GB Bank is a new specialist bank headquartered in Middlesbrough which was granted its full UK banking licence on 16th August 2022 .