Share

Social investment bank could "drown" other players, warns Hayday

Social investment bank could "drown" other players, warns Hayday
News

Social investment bank could "drown" other players, warns Hayday

Finance | Vibeka Mair | 2 Sep 2009

Malcolm Hayday, chief executive of Charity Bank has warned that the proposed Social Investment Wholesale Bank could have the effect of “turning on the tap to seedlings and seeing them all just drown”.

The government is currently consulting on the form and function of a proposed Social Investment Wholesale Bank (SIWB). The consultation document makes clear that the SIWB will not lend to frontline service delivery charities, but to those intermediaries that already inhabit the retail social investment market – like Charity Bank.

However, Hayday (pictured) told Charity News Alert that he is concerned that the bank could have consequences for all other actors in the market.

“At this stage in market development it is very difficult to see a financially sustainable institution that will be able to sustain itself solely on wholesale intervention.

“Therefore it would seek other income-generating activities which would either mean lending itself or taking fee income activity.

“I question that unless it is really big even then it will be quite modest in comparison with the commercial banks. Then, you’d be much better off putting the money into Charity Bank, New Philanthropy Capital, Social Finance, Venturesome, the Impetus Trust or the sustainable funding project within NCVO.

“Then the money would create much more impact and added value than a small amount of money going into a wholesale investment bank.”

For more views from other banks in the social investment market see our special feature.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Charities could lose out on gift aid under devolution settlement, tax experts warn

27 Nov 2014

Proposals from the Smith Commission to give Scotland powers over the rate of income tax will have “significant...

More will-writers prompting clients to leave legacy gifts, research shows

27 Nov 2014

More solicitors and will-writers are telling their clients about leaving a legacy than at any time in...

ASA bans Health Lottery advert for encouraging gambling behaviour

26 Nov 2014

The Advertising Standards Agency has ruled that an advert from the Health Lottery promoting an online...

Joint registration between Charity Commission and HMRC delayed

27 Nov 2014

Plans for the Charity Commission and HM Revenue & Customs to set up a joint registration process for...

NCVO backs Commission's focus on regulation

26 Nov 2014

NCVO supports the Charity Commission’s decision to focus more on regulation, but is cautious about the...

MPs urged to retain amendments to judicial review bill to protect charities

26 Nov 2014

A group of legal bodies have written to MPs to urge them to protect judicial review from changes that...

'Be careful what you say and don't be boring on social media'

27 Nov 2014

Don’t be too serious on social media and be prepared to pay for premium services, delegates at yesterday’s...

'Focus on people as well as technology', IT experts told

27 Nov 2014

IT directors need to learn when to step back and allow others in their organisation to experiment with...

JustGiving launches free guide to raising money using social media

25 Nov 2014

JustGiving and social media consultancy Social Misfits Media have launched a guide to how charities and...

Join the discussion

 Twitter button

@CSFinance