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

Falling rag prices likely to cost charities tens of millions

1 Sep 2014

Charities are likely to lose tens of millions of pounds this year from a fall in the price of recycled...

Over 145 charities receive donations from #icebucketchallenge through JustGiving

1 Sep 2014

Over 145 individual charities have benefited from donations made as a result of the ice bucket challenge,...

Supermarkets donate profits from #icebucketchallenge to MND Association

29 Aug 2014

Tesco has announced that it will donate the profits made from an increase in sales of ice to the Motor...

Changemakers becomes part of Foyer Federation

1 Sep 2014

Youth charity Changemakers has merged into the Foyer Federation to scale-up its youth leadership projects,...

Sky News anchor accuses Barnardo's chief of fence-sitting over Rotherham scandal

1 Sep 2014

Barnardo’s chief executive Javed Khan refused to call for the resignation of South Yorkshire Police...

Former Awema chief executive cleared of two counts of fraud

1 Sep 2014

The former chief executive of the Welsh race relations charity, Awema, was cleared of two counts of fraud...

Over 145 charities receive donations from #icebucketchallenge through JustGiving

1 Sep 2014

Over 145 individual charities have benefited from donations made as a result of the ice bucket challenge,...

EU data protection proposals would kill fundraisers’ mailing lists, says report

28 Aug 2014

Proposed EU data protection rules could destroy mailing lists relied on by charity fundraisers, and would...

Macmillan: We did not hijack #icebucketchallenge

21 Aug 2014

Macmillan has hit back against accusations on social media that it has hijacked #icebucketchallenge, saying...

Join the discussion

 Twitter button

@CSFinance