New banking network begins trading on AIM

NBNK Investments has begun trading on the AIM market to raise money to establish a new nationwide banking network.

The company has issued 50 million shares at 100p per share to the market with the aim of funding 600 branches across Scotland, England and Wales.

It intends to build the network through acquisitions and hopes to provide a "traditional branch-based, personalised, local service" that will run alongside internet and telephone operations.

The board of directors of the new company, which is looking for a 4-5% share of the UK banking market, includes Sir David Walker, Lord Brennan, Lord McFall, Lord Forsyth and Charles McCreevy.

Lord Levene, chairman of NBNK, says: "The investment community, the public and the regulators have welcomed the potential for an institution such as the one we propose. Admission marks the completion of the first stage in our plans.

"We will now establish a dialogue with a number of sellers of assets which would fit our acquisition profile."