Cambridge Local Government Pension Fund and Trinity Hall, University of Cambridge, have launched Cambridge & Counties bank.
The bank's primary purpose is for lend to small and medium-sized businesses, offering secured lending against property, secured pension lending and business deposit accounts.
C&C will offer loans of up to SIPP and SSAS schemes secured against commercial property with terms of up to 20 years, at a maximum of 50% of the pre-borrowing fund value, and at no more than 70% LTV of the asset purchased.
The bank's owners said it will lend more than £100m over the next four years, and will later launch a retail banking arm.
The bank was previously known as The Pensions Bank before Cambridge LGPF and Trinity arranged to buy it for £6m from Law Debenture Trust Corporation.
In its previous carnation, the bank was also owned by Pointon York until 2006, and provided specialist banking services to pension schemes.
Prior to the announcement in August 2011 that Cambridge LGPF planned to buy it, the bank had made a series of losses.
Patience must be a watchword
'Misleading, unclear, unfair' promotions
Will extend to wider models
1,414 in 2017/18
UK Multi Cap Income sees success