Community bank goes into administration

A not-for-profit bank that offered loans to local businesses has gone into administration.

Hampshire Community Bank, based in Winchester, was started in 2014 to help small firms across the county.

It pledged to reinvest 50% of its profits back into communities, rather than pay it out in large bonuses.

But its owners have decided to close the company after plans to extend its banking services to members of the public failed.

When the bank opened, Eastleigh Borough Council, Portsmouth City Council, Test Valley Borough Council and Winchester City Council became seed investors.

It was also financially supported by local universities and a community interest company.

Its aim of becoming a retail bank meant it needed to be licensed by regulators.

But it had been unable to achieve this within the timescale and funding available, according to Portsmouth City Council.

A spokesperson for the authority said it was "deeply regrettable" that the scheme was not able to succeed.

They added: "This is a lost opportunity for businesses in the city to benefit from easier access to finance, but we will continue working to build the local economy and raise prosperity in other ways."

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