Challenger bank GBB has received its UK banking licence from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
The challenger bank has also received £28m in funding from Teesside Pension Fund after receiving its provisional banking licence.
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GBB, which is now trading as GB Bank, aims to support property developers in the region by lending £3bn over five years and build a £1bn plus balance sheet.
GB Bank will initially focus on the underserved regions in the UK’s North East, Yorkshire, and North West.
It seeks to fund 20,000 homes and real estate projects, which is expected to create 100,000 jobs.
GB Bank CEO Sue Hayes said: “This is a landmark day for GB Bank, bringing to fruition the hard work of our team to build a new specialist bank that provides much needed financial support to property developers in underserved regions, as well as savings rates that the UK public will love.”
GB Bank chairman Paul Rippon said: “As the UK recovers from the pandemic it is becoming even more important that we improve the provision of finance to small businesses. GB Bank is perfectly positioned to better serve regional developers who will help Britain build more homes and spaces and drive economic prosperity for all.”
In 2020, GB Bank (then GBB) had secured a £20m investment from the Teesside Pension Fund.
