Not-for-profit bank enters administration

Hampshire Community Bank, a not-for-profit institution established in Winchester in 2014 to provide loans to small businesses throughout the county, has entered administration. The bank had committed to reinvesting half of its profits into local communities instead of distributing them as substantial bonuses. However, its owners opted to cease operations following the unsuccessful attempt to broaden its banking services to include the general public. Upon its inception, Eastleigh Borough Council, Portsmouth City Council, Test Valley Borough Council, and Winchester City Council served as initial seed investors. Additionally, the bank received financial backing from local universities and a community interest company. The objective of transforming into a retail bank necessitated regulatory licensing. Nevertheless, according to Portsmouth City Council, the bank was unable to secure this licensing within the allocated timeframe and financial resources. A spokesperson for the authority expressed that it was “deeply regrettable” that the initiative could not succeed. They further stated: “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.”