Community banks, not oppressive wholesalers, are what the sector needs, argues Gordon Hunter.

Futurebuilders (FBE) distributed £155m in its seven-year existence. The handling charge was £4m a year, 18 per cent of what was distributed. Some £31.3m of unallocated funds were returned to the Treasury. The Social Investment Business (SIB, formerly FBE) employs 98 staff. SIB has teamed up with Acevo (whose chief executive Stephen Bubb is chair of SIB) to jump on the Big Society bandwagon. They propose a Big Retail Bank to partner the Big Wholesale Bank. The result would be two new quangos offering loans to local groups that need grants rather than debts.

Big Society Banks are to be funded from dormant accounts identified and released by banks, pension administrators, insurance companies and national savings. But will they make it easy? Current case studies show that there are no agreed protocols in place and it can take months to track down and convert a dormant account.

Meanwhile the Royal Bank of Scotland has joined Acevo and SIB in promoting the Understanding Social Investment report which argues that grants offer no market returns, loans are best and the big boys, with their new charity banks, are best placed to capitalise the government's social investment programme.

Do they honestly think that commercial bankers are the answer to building and nurturing the Big Society?
What these hard-pressed volunteering groups need is a local resource: community banks, managed by local people, meeting local needs through traditional grant aid.