Small business bank ready to unveil management team

A NEW bank to specifically target the lending logjam in the small business market is on the brink of unveiling its key management team, paving the way for a major City fundraising.

The British Enterprise Bank (BEB) says it is due to kickstart its rolling presentation to investors in September to raise 100 million. It is aiming for firm financial commitments by the end of this year.

Sources say an announcement on the management team could be made within a week or two, with a target date for the bank to start trading operations within nine months. The project was first unveiled last autumn, but it has taken longer than expected to get all the desired candidates on board.

Justin Chittock, the BEB project manager, told Scotland on Sunday: "It's taken a bit longer than we would have liked. But the people are just about there now. They are well-known names in the financial services industry and will add credibility to the project."

The team will constitute an advisory board who will be the public face of the BEB as it goes to investment banks and hedge funds for backing. Chittock said informal canvassing of the idea of a bespoke bank specifically aimed at small business lending had shown enthusiasm for the idea.

The BEB plans to open more than 20 branches at business parks, including three in Aberdeen, Edinburgh and Glasgow.

Professor Merlin Stone, who advised Edinburgh-based Sainsbury's Bank, Scottish Widows and Prudential, says the BEB branches will be staffed by traditional bank managers.