Conister is first Isle of Man bank granted UK branch deposit-taking licence
An Isle of Man bank has been approved for a UK branch deposit-taking licence for the first time.
Conister Bank, the only independent bank on the island and part of Manx Financial Group, says approval provides the opportunity to potentially expand its balance sheet substantially through UK deposits and wholesale funding.
Conister already has an Isle of Man Class 1 Deposit Taking licence issued by the Isle of Man Financial Services Authority (FSA) and is regulated by the FCA for the provision of consumer credit lending in the UK.
Its branch application required PRA (Prudential Regulation Authority), FCA FSA’s consent.
Receiving authorisation not only allows Conister to grow its balance sheet substantially through a mixture of UK deposits and wholesale funding, but it is also the first time an Isle of Man bank has been authorised in the UK to accept deposits.
Douglas Grant, the group’s CEO, said: “Obtaining PRA authorisation for our UK branch to accept deposits not only serves as validation of our growth strategy by both our principal regulator and the UK regulators, but it also marks a significant milestone in the group’s evolution.
“Authorisation will provide Conister with access to UK deposits, supplementing liquidity received from its loyal Isle of Man depositors.
“We will deploy this additional liquidity to build on our reported record lending in the first half of this year as we expect to lend a record £0.4bn this year.”
Conister recently opened an office in Basingstoke, Hampshire, with divisions dedicated to deposit-taking, structured finance and asset finance. It is anticipated that further jobs will be created over the coming years, in line with Conister’s expansion programme.
Manx Financial Group recently reported another record half year set of results with an increase of 30% in pre-tax profits of £3m.
Conister lent a record £182.6m in the first six months of this year, £71.7m, or 65%, ahead of the same period last year, £110.9m at June 30, 2022.
