The Church of England has taken a stake in a new "challenger" bank
being created from 314 branches of the Royal Bank of Scotland.
RBS is being forced to sell the branches under European Union rules for the government bailout it received in 2008.
The dormant Williams & Glyn's brand is being revived in the £600
million deal to form the new bank, which will take on the major high
street players.
The consortium backing the new bank includes the Corsair Capital investment fund and Centerbridge Partners.
The Church of England said the new bank would have a focus on ethical
standards and service the needs of retail and small to medium-sized
enterprises (SMEs).
It has a projected 5% market share of the SME and mid-corporate banking markets, and a 2% share of UK personal current accounts.
Andreas Whittam Smith, the Church of England's first estates
commissioner, said: "The Church Commissioners are excited to have the
opportunity to be involved in creating a UK challenger bank operating to
the highest ethical standards and giving consumers more choice. We are
delighted that the Royal Bank of Scotland recognised the strengths of
our bid and the consortium's vision, and have chosen the consortium as
their preferred bidder."
Andrew Brown, Secretary to the Church Commissioners, said: "This is a
great opportunity for the Commissioners to invest in an exciting
opportunity for the benefit of the serving and retired clergy, bishops,
cathedrals and the wide work of the Church of England throughout the
country especially in areas of need and opportunity."