Welsh economy secretary Ken Skates (pictured above, left) has announced that the UK's first development bank has been given the official go-ahead by the Welsh government.
The Development Bank of Wales – which is due to launch in October – will offer the necessary growth finance and business support to attract and retain micro businesses and SMEs within Wales.
The aim is to generate over a billion pounds of investment to the Welsh economy over the next five years.
This will be the first service of its kind in the UK and is expected to provide Wales with a competitive business edge over the rest of the UK.
Mr Skates stated that it would receive a further £35m of EU funding to add to the £136m Wales Business Fund that was announced last year to support start-up and existing SMEs across Wales.
The Welsh economy secretary said: “I am delighted to confirm that following Welsh government approval of the business case, the Development Bank of Wales is set to be up and running by October.
“The development bank will be the first of its kind in the UK, addressing current market failures within business finance and providing focused support for micro, small start-ups and innovative businesses across Wales enabling them to become fitter, bigger and stronger.
“It will increase the availability of funding to SMEs to £80m per annum within five years and we anticipate that, taking into account private sector leverage, this will have a potentially transformational impact on the Welsh economy of over £170m per annum by 2021/22.
“To support the bank we are extending the Wales Business Fund by a further £35m with EU funding.
“This will take the total of the fund to £171m, and we will have news of more money to support the bank's work later this year."
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Close Brothers’ banking division reports 6.6% loan book growth
Close Brothers Group PLC has revealed that its banking division has seen a 6.6% growth in its loan book in the 11 months to 30th June 2018...
Leeds introduces two-year fixed rate BTL product
Leeds Building Society has launched a two-year fixed rate buy-to-let (BTL) mortgage product as part of a wider refresh of its 70% LTV BTL range...
Just 20% of Brits would opt for a challenger bank
Only 20% of UK residents would opt for a challenger bank if they were opening a new account today, according to research from Equifax...
Santander to form digital investment banking team
Banco Santander has announced that a new digital investment banking team will be formed within Santander Corporate & Investment Banking...
Metro Bank introduces developer portal
Metro Bank has launched a new developer portal for FCA-registered third parties wishing to build services on top of its APIs...
Wesleyan Bank appoints new head
Wesleyan Bank has appointed David Brownbill (pictured above) as its new head of indirect sales...
Arbuthnot announces profit surge
Arbuthnot Banking Group has reported a half-yearly profit before tax of £3.5m for the six months to 30th June 2018, up from the £2.5m recorded during the same period last year...
Temenos extends contract with Northern Trust
Temenos has signed a multi-year contract with global financial services company Northern Trust...
TSB adds new director to board
TSB Bank PLC has announced the appointment of Andy Simmonds (pictured above) as an independent non-executive director...
60% of Brits want ‘peace of mind’ when using cards online
Three-fifths of Brits (60%) want ‘peace of mind’ – regarding online security and fraud prevention – when using cards online, according to recent research...
Tandem reaches 250,000 customers
Tandem has announced it now has 250,000 customers across its cashback credit card, fixed term savers and account aggregating banking app...