RBS's Whitelaw Laidlaw to launch into commercial lending

Whiteaway Laidlaw Bank is to launch a commercial lending arm on April 7, offering loans for property investors and businesses.

WLB, which has had a banking licence since 1971, has undergone a series of changes in the last few years.

In 2007, the bank was bought by the Manchester Building Society for £5m from Home Retail Group, owners of Argos and Homebase. The bank had been dormant for some time before its purchase.

Manchester Building Society planned to develop the bank’s specialist service to small business customers, but in January this year sold it to the private equity arm of state-owned lender Royal Bank of Scotland – a move which one MP described as “deeply worrying”.

Chuka Umunna, a Labour member of the Treasury Select Committee, said: “It is worrying to see a small bank being gobbled up by a larger bank.”

Earlier this month, WLB acquired Commercial First Partnership’s origination systems, sales, new business teams and other infrastructure, enabling it to enter the commercial lending market.

WLB has been holding seminars for brokers and packagers to tell them about the launch, which will initially involve only a handful of brokers.