New research offers ‘ringing endorsement’ of CDFIs

New research by GHK Consulting for the Dept of Business, Innovation & Skills and the Office of the Third Sector offers a ‘ringing endorsement’ of the CDFI sector, says Bernie Morgan, CEO of the sector’s trade association. New Start covers the story here.

Community development finance institutions — a sector that in its present form is barely twelve or thirteen years old in the UK, it should be remembered — more than triple every pound they invest in local areas, according to the report. Nonetheless, like much of the social enterprise sector, the report also concludes that they remain hampered by a “lack of comprehensive data and agreed reporting frameworks”.

Our own ART is a prominent case study in the report (on p.181, which gives you a clue that it isn’t a short report….).

In late-2009 the sector’s active loan portfolio comprised around 6,500 loans — and totalled just over half of the £600m loan capital available to the sector.

  1. Paul Kalinauckas Reply

    This fits well with the current debate on the reconfiguration of financial services following the near collapse of the banking system. Why not have regional loan funds that support local businesses as an alternative to the banks? The CDFI sector is ahead of the game here. Black Country Reinvestment Society will shortly celebrate lending £5M since start up and we will lend another £5M in the next two years.

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