HSBC, Barclays, Royal Bank of Scotland, watch your backs because the Bank of Essex is about to launch! That’s right, Essex County Council is considering setting up its own bank for the community to help local firms who are struggling to obtain credit from the bigger banks.
Personally another bank is probably not the best idea at the moment. Companies are dropping left, right and centre and banks need experience and stability to survive. This could potentially cost Essex more than the proposed £50million which is already being funded by the council and local authorities if things go wrong.
The council leader, Lord Hanningfield, has said that Essex is among the worst affected places in the UK by the credit crunch and says there are many small businesses which can’t get the credit to develop in the area and this is the solution that they have in mind. We shall see…