Press Release
16 Mar 2007
March 16th 2007
Queries: Jessica Tyrrell, Marketing and Development Manager 020 7682 1666
London Rebuilding Society welcomes the Commission for Unclaimed Asset's recommendation for the establishment of a 'Social Investment Bank', with founding capital of at least £250 million, as set out in its report published this morning.
The Commission on Unclaimed Assets was established in October 2005 to study how funds released from dormant bank accounts could be used to generate the maximum public benefit.
A Social Investment Bank would help to put the third sector on a more robust financial and professional footing. It would help capitalise good social investment practice that delivers social return such as practised by London Rebuilding Society (LRS) and other Community Development Finance Institutions. It would assist them in gaining access to other forms of finance - both public and private - to continue the excellent work they have been doing.
LRS was delighted that one of its borrowers, Equatoria Women, was mentioned in the report as a case study indicative of the opportunities that can be generated in hard-to-reach communities.
LRS also particularly supports the final conclusion of the report - that the new Social Investment Bank should be an independent institution answerable to the third sector, with a governance framework that is effective, representative and compliant with best practice. Its remit should not overlap those of any of the existing institutions which are already serving the sector so well; it is also important that even if it is created as a centrally-run organisation, delivery takes place in the regions, near where the actual need is felt.
London Rebuilding Society (LRS) provides loan finance and business support to social and ethical enterprises and not-for-profit organisations. Founded to benefit London's communities, LRS is itself a social enterprise, an exempt charity Industrial and Provident Society, and an autonomous organisation controlled by its member-shareholders. LRS' relationship lending philosophy means that it offers support to potential borrowers in the preparation of their investment proposals, often from a very early stage in their development. LRS has also created an innovative scheme for helping homeowners unable to afford essential repairs to their property, which is now piloting in the London Borough of Newham.
Jessica Tyrrell, Marketing and Development Manager - 020 7682 1666
London Rebuilding Society