The bank said it was responding to recent reports indicating that substantial improvements were needed in the way government departments provided funding to voluntary and community groups while international disaster appeals were making it more difficult for smaller organisations to get their message across.

Malcolm Hayday, chief executive of Charity Bank, said that while many community organisations were cautious about seeking loans, when they did they often found “doors closed in their face or the hurdles too high to cross”. He added: “We lend responsibly where we believe our depositors' money can have the most impact."

Charity Bank lends to charities, community finance, voluntary groups, social enterprise, community trusts and other community groups. They also lend to for-profit companies if the loan is for exclusively charitable purposes. Loans are generally for amounts of between £5,000 and £500,000.

For more information visit www.charitybank.org