Lord Levene, a City banker, Chairman of Lloyd’s insurance market, will Chair a new bank. The bank which has yet to be named is on a fast pace to join the FTSE 100 listing. The announcement reported the bank will be quickly floated at the end of the month on AIM and expects to move to a full listing by the end of the year.
The bank plans to raise funds from City institutions such as Invesco and F&C for the AIM float. Through the float process the bank could raise between 2 billion and 4 billion pounds offering 10 per cent of shares to private investors in the public offering. They would buy a small bank with raised funds.
The possible buy could come from various sources to enable a build of a nationwide branch network. Such sources could be the 600 branches Lloyd’s is due to sell as part of their government rescue agreement, or branches owned by National Australian Bank.
The difficulty for the new bank will be convincing customers to leave their own bank and join the new one in the midst of an unstable economy.
The bank is set to offer current accounts and mortgages to individuals and small businesses.