In contrast to the high street banks, Charity Bank continues to see its deposits and loans grow, with it reporting a 40% increase in loans to charities and community projects in the year to April 2009 and an increase of over 20% in deposits by May.

The amount deposited stands at £42.2m and loans from the social bank currently total £29.2m compared to £20.8m at the same time last year.

The bank has raised more than £5m from the first issue of its Charity and CAMRA ISAs and says that for the long-term success of the bank this has enabled it to grow its depositor base to almost 2,000, an increase of 39% in three years.

Social investing continues to bear fruit with most borrowers coming from the community regeneration sector (16.7%) in 2008, followed by social care (15.9%), and education/training (14.6%).

This includes two loans for a social enterprise on Mull that provides support for the island’s farmers and created jobs; a loan towards the costs of renovating a new centre for Newry & Mourne Carers that provides support, respite, advocacy and training to carers of all ages in Northern Ireland; and the creation of a ‘floating classroom’ for the Hebridean Whale & Dolphin Trust to educate people about sea life around the Scottish west coast.