Charity Bank has reported a sharp upturn in loan approvals, and has cited this as evidence that the sector’s confidence in the economy is growing.

During the first half of this year, Charity Bank approved loans worth £11m, almost double the £6m approved in the first half of 2013.

Over same period in 2012, approved loans totalled £5m.
Charity Bank CEO Patrick Crawford said: “Our experience is that charities and other social sector organisations are starting to regain confidence about the economy, and becoming more ready to borrow in order to grow their activities where it is prudent to do so.”

The growth in loans approved will help to stem the decline in its loan book, which fell from £65.5m in 2012 to £58m in 2013.

The increase in loans approved is also likely to be due in part to the conclusion of its restructuring last year. It was forced to relinquish its charity status after finding it could not comply with both charity law and the requirements of the Financial Conduct Authority and was able to lend less money over the period it negotiated the changes.