Chief executive Malcolm Hayday says the sector has a 'massive unmet need' for borrowing
Charity Bank is planning to grow its balance sheet to about £500m over the next decade, according to Malcolm Hayday, its outgoing chief executive.
Hayday told Third Sector that the bank, which provides credit to small and medium-sized charities, has grown from having £6m in funds when it started a decade ago to about £85m this year.
"The trustees have committed themselves to growing the balance sheet to £250m in the next five years, and £500m in the five years after that," said Hayday, who is standing down from the role later this year.
He said that there was a massive unmet need for borrowing in the charity sector and that the bank could continue to grow steadily by "just continuing to do what we do best".
He said the bank’s loans tended to average about £150,000 and were usually to buy assets.
"However, we’re seeing more need for unsecured working capital," he said. "The average loan has also grown larger in the past year. At the moment it’s £300,000 or £400,000."