Cameron all set to launch ‘Big Society Bank’

Prime Minister David Cameron is all set to launch `Big Society Bank' on Wednesday, April 4, to help savers invest in charitable and social causes.

The £600 million institution will use money from dormant accounts to support charities and community groups.

As per extracts released by the Prime Minister's office, Mr. Cameron will say in a speech that the new financial institution will supply capital to help society expand.

Unveiling the Big Society Bank, Mr. Cameron said, "Just as finance from the City has been essential to help businesses grow and take on the world, so finance from the City is going to be essential to helping tackle our deepest social problems."

It will receive £400 million from unclaimed assets, while the remaining £200 million from the country's four biggest retail banks, viz. Barclays, Lloyds, HSBC and Royal Bank of Scotland.

The Big Society Bank will offer cheap loans, rather than grants, so that a large number of projects can get the money. Repayments will be made through earned income.