Airdrie Bank to receive more funding

THE business leaders investing £10 million in Airdrie Savings Bank to support a return to traditional banking are expected to contribute more funds to boost its capital base and encourage it to lend to Scottish businesses.

Stagecoach chief executive Brian Souter said the group, which also includes his sister Ann Gloag, Sir David Murray, Alastair Salvesen, Sir Tom Farmer, Ewan Brown and Sir Angus Grossart, wanted to support the trustees to build something bigger. He said they were responding to public dismay over the big salaries and big profits at larger banks, and the Airdrie offered an alternative based on mutual principles.

"The trustees will need a bigger capital base and the idea would be to help them with that further down the line," said Souter.

Each of the investors have contributed 1m, but Souter described that as a "starting point".

He said: "We are committed to supporting Airdrie Savings Bank in the longer term. It is a bank that will invest in Scotland."

The bank intends to use the new funds to help it open two branches in addition to the seven it currently has in the Lanarkshire area.

The 175-year-old bank does not have shareholders.