Church buys bank branch stake

The new high street bank that will take over the running of 314 bank branches will revive the dormant Williams & Glyn's brand, under plans announced today.

It is not yet known when the brand will start to appear on the high street. The business will take on a £19.7 billion loan book and £22.2 billion in customer deposits.

RBS Chairman Sir Philip Hampton said the new bank would have a particular focus on small business banking. He said:

"Williams & Glyn's will play an important role in the UK banking landscape and will be an excellent new addition to the market, with a particular strength in small business banking - a sector that is so crucial to the UK's economic recovery."

More: Church of England takes stake in new 'challenger bank'

The Church of England's investment arm is to have a stake in the running of 314 bank branches being hived off by state-backed Royal Bank of Scotland (RBS) as part of a £600 million deal.

Investors including the Church Commissioners and financial firms Corsair Capital and Centerbridge Capital are to revive the dormant Williams & Glyn's brand, under the plans announced today.

RBS, which is 80% state-owned following its near-collapse at the height of the financial crisis, has been forced to sell the branches under European rules.