The Church of England is among a group of investors who have purchased more than 300 branches of the Royal Bank of Scotland (RBS) to form a new bank, writes Isabel de Bertodano.
The bank, reviving the name Williams & Glyn’s, has received a £600 million investment from a consortium led by the private equity firm, Corsair Capital, with a further £200m agreed as a later payment.
The Church of England itself has not announced how much it invested in the project but it is understood to be around
10 per cent of the total. The Church said that it expected
a 5 per cent return on any investment it makes. Andreas Whittam Smith, first estates commissioner, emphasised that the bank would operate “to the highest ethical standards”.
Profits from the investment will be used to support the Church of England’s work, according to Andrew Brown, secretary to the Church Commissioners.
“This is a great opportunity for the commissioners to invest in an exciting opportunity for the benefit of the serving and retired clergy, bishops, cathedrals and the wide work of the Church of England,” he said.
Williams & Glyn’s is known as a “challenger” bank, meaning that it represents serious competition to the larger banks, particularly focusing on small business banking. It will operate mainly in the north of England and Scotland.
This is the first time the Church Commissioners has been a significant investor in such a venture.
Until 1985 Williams & Glyn’s was a high-street bank in England and Wales owned by RBS.
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