CHANCELLOR of the Exchequer Gordon Brown has opened an account with a new Kent bank set up to help good causes.

The Charity Bank, a not-for-profit enterprise, opened its doors for business at Kings Hill, West Malling, with the aim of changing the way people support charity.

It was given a Government seal of approval at 11 Downing Street, the Chancellor's official residence.

Mr Brown was one of the first customers to open an account. He said: "The Charity Bank is not just another new bank, it is a new way of supporting local communities working together.

"It is the world's first not-for-profit bank, a completely new concept in banking and charity - providing affordable loans for charities who might otherwise find it difficult to access finance.

"It enables people to invest in their communities, it fosters a new spirit of self-sufficiency, initiative and independence in the voluntary sector: financing not fundraising; investing not giving; a hand up, not a hand out."

The bank is backed by a number of financial institutions and the Charities Aid Foundation, also based at Kings Hill.

Malcolm Hayday, the bank's chief executive, said the bank was for people who wanted to put social return before personal financial gain.

Mr Hayday said: "There's a lot of talk about the ills of our society. Charity Bank is a perfect way for everyone to do something for our communities that doesn't cost too much but which has a great effect."

Recent research commissioned the Charity Bank showed that nearly a quarter of all people in the UK feel guilty about not doing enough for good causes.

Mr Hayday added: "In uncertain times, people often feel reluctant to give away cash they might need for a rainy day. Unlike a donation, which is effectively a one-off payment that you don't see again, a deposit with Charity Bank is invested, returned and invested again and again - and you can get your money back. It's the ultimate in recycling resources."

The bank offers a range of loans to small and medium-sized charities in the UK. The money will be used for short term bridging loans against delayed grants or other identified income, working capital loans, standby commitments to evidence matched funding, and underwriting to kick start or underpin a fund-raising programme.

More details at www.charitybank.org, or by telephoning 01732 520029.