The world's first charitable bank launched itself to Oxfordshire investors at the Oxford Playhouse.

The Charity Bank, endorsed by Chancellor Gordon Brown, invited local businesses and charities to hear about its innovative approach to banking and the financing of charity.

Under the terms of the scheme, investors earn a small amount of interest on their savings so the bank can make affordable loans for charitable purposes.

Charities in Oxfordshire which might normally struggle to obtain loan finance are now being invited to apply for loans.

Malcolm Hayday, speaking at the launch, said: "The charity bank has come to one of Britain's leading seats of learning to explain how a new bank, with an innovative approach, can enable people and businesses throughout Oxfordshire to re-invest in their communities, to the benefit of all."

The scheme is supported by Oxford law firm Linnells and chartered accountants Critchleys.

Robert Kirtland, of Critchleys, said "It will provide an invaluable source of funding for many charitable projects that cannot raise conventional finance."

Linnells partner Robert Foster said: "It is important that the charity, banking, accounting and legal communities in Oxford know about the role of Charity Bank because increasingly people want advice on how they can invest in good causes with minimum risk and maximum social gain."