The property had been advertised to prospective tenants through estate agents from last summer but has remained unoccupied, with the change of use hoped to spur more interest.
Permission was also received to change the use of residential accommodation located on the first floor to administration offices, but that is yet to be implemented.
The planning report states that the pre-1900s building is mostly vacant, with part of the first floor used for residential purposes.
Planners deemed that the scheme would be of benefit to the parish and wouldn’t undermine the “vitality” of the main centres of St Peter Port and St Sampson.
Pictured: The building formerly housed Lloyds bank until it announced a raft of closures across the Channel Islands.
No public representations were made to the application.
Any alterations to the building will require a separate planning application.
The site falls within a Local Centre and Conservation Area under the Island Development
Lloyds announced it was shuttering the store, along with one in Jersey and its only branch in Alderney last June, with operations stopping six months later.
A significant reduction in face-to-face customers over the past decade was cited as the reason for the closures.