Charity Bank loans 'are holding up'

Social lender reports no significant drop in charity borrowing

Social lender Charity Bank has not seen a significant drop in charity borrowing despite the financial crisis, according to one of the bank's senior figures.

"We're not seeing any large movement in the amount of lending we're doing," said Mike Hicks, head of lending at the bank. "We may have seen our inquiry levels drop a bit, but not significantly, which is what you might have expected.

"We're still very pleased with the flow of deals we're doing. Charities are still keen to look at long-term projects.

"Nor have we seen any noticeable pick-up in our default rates, which have always been extremely low."

Nevertheless, he said, his bank tended to lend money to charities with long-term plans such as property deals and future projects, and they might not have felt the effects of the recession yet.

"A lot of these deals were conceived several months ago," he said. "It could be that the recession hasn't worked its way through the system yet."

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