Warrington has become the first borough council to invest £30m into a new bank, giving it a 33% shareholding.
The council has approved the investment in Redwood Bank, which has just been granted its banking licence.
Warrington Borough Council’s executive board member for corporate finance, Cllr Russ Bowden, said: ‘This is a really important deal for Warrington and part of our commitment to innovative financial approaches which support growth and sustainability in the borough.
‘We see our stake in the company as an investment in our future. It’s about investing in our local economy, helping businesses thrive and generating income which will enable us to protect council services.’
The new SME business bank will open a northern regional office in Warrington and is expected to launch to customers later in 2017.
Jonathan Rowland, co-Founder of Redwood Bank, said: 'We extend a warm welcome to Warrington Borough Council as a new shareholder in Redwood. It’s clear that the council shares our vision to create a robust, secure and profitable bank that is not only well placed to deliver strong returns but also to stimulate sustainable economic growth in Warrington and the surrounding area.
'This is a unique Public-Private Partnership that heralds a return to community banking in the UK.’