Lord Leitch, a former chairman of the Association of British Insurers, Allied Dunbar, Eagle Star and Threadneedle Asset Management, as well as current chairman of the National Employment Panel, said he was "delighted" to be involved with the independent charity.

"With the active support and commitment of the financial institutions in the UK, I believe that together we will be able to make a significant and important contribution to the voluntary sector in this country," he said.

The Balance Foundation will make grants to the charitable sector from financial institutions' unclaimed assets, while an insurance scheme enables the owners of the money to claim it they ever come forward.Its grant-making policy is due to be published in the fourth quarter of 2004, and any charitable work in the UK or overseas will be eleigible to apply.

The current trustee board, which includes former Charity Commissioner Michael Webber and Lehman managing director Piers Le Marchant, will initially be concentrating on social exclusion issues, including the educationally disadvantaged.