Mayfield Community Bank Project passes $100K mark

Mayfield Community Bank steering committee just celebrated its first milestone, reaching $100,000 in pledges in just eight weeks of campaigning.

They're working hard to start the Hunter region’s first Community Bank.

 

The model is based on the community owning its own branch as a local business, with Bendigo and Adelaide Bank Limited (BABL) providing a comprehensive banking service on a franchise basis. 

 

The committee has promoted the idea locally, gathering pledges of support.

Pledges are non-binding. They’re used to gauge if people will invest enough in shares to start the business. When pledges reach the target region of $800,000 a feasibility study takes place. If its positive, a public company is formed. The company issues a Prospectus and raises local capital. It then secures premises, recruits staff and opens for business. 

 

The Community Bank retains half of the profits. After costs, a minimum of 80% of remaining profit is given to local community organisations, and the remainder can be returned to shareholders. 

 

Initial pledges range from a minimum of $500 up to a maximum of around $50,000. After a mere eight weeks of campaigning, pledges have already passed the $100,000 mark. It shows many people in Mayfield are excited by the possibilities the concept offers. So are Newcastle City  Councilors.

 

At a recent public voice hearing, Councilors were impressed to hear that in East Gosford, a community of 3,500 people, the bank gave a quarter of a million dollars to local organizations.  Furthermore, applications were not snagged by bureaucracy, but within one or two months of application.

 

“Imagine if we had such a bank in Mayfield, what we could do” said Chairperson Bronwyn Grieves. “We could improve Mayfield Pool, adding features to make it more fun and increase patronage with little cost to council”.

 

“It’s the sort of bank we need. It builds community spirit and networks as people do their banking. It helps to create the sort of vibrant community that the Hunter will need to adapt to a challenging future”

 

Pledge forms can be obtained and lodged at the Mayfield Pool Shop, John Karmas Real Estate and Jon Dickson in Maitland Road Mayfield. For more information, ring Steering Committee members Annie Rook 49683648 or Niko Leka 0406296141.