Tesco Bank CEO Benny Higgins (pictured above) has been appointed to develop the remit of the new Scottish National Investment Bank.
Scottish first minister Nicola Sturgeon announced that introducing a Scottish National Investment Bank would take a new approach on capital investment.
The commitment – which is part of the programme for government 2017/18 – has been informed in part by advice from the Council of Economic Advisers (CEA).
The CEA has highlighted the important role national investment banks play in providing long-term investment to support economic growth in many European countries.
Mrs Sturgeon said: “A significant constraint faced by many businesses with growth potential is access to long-term, patient capital.
“I can therefore announce today that we will begin work to establish a Scottish National Investment Bank.
“Benny Higgins, CEO of Tesco Bank, has agreed to lead work on developing the bank's precise remit, governance, operating model and approach to managing financial risk.
“The Scottish government has already taken steps to improve access to finance through, for example, the establishment of the Scottish Growth Scheme.
“However, if we are to succeed in raising our ambition, this is a challenge we must do more to address.”
Mr Higgins added: “It is a privilege to be asked by the first minister and the Scottish government to lead the work on creating the Scottish National Investment Bank.
“It is vital that Scotland puts in place the right structure to develop long-term, sustainable growth for all aspects of the economy.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
British Business Investments aims to invest in ‘at least one’ challenger bank over next 12 months
British Business Investments Ltd has said it hopes to make another investment in at least one challenger bank over the next 12 months...
Gatehouse bolsters property team
Gatehouse Bank has expanded its property division with two appointments to its build-to-rent and real estate finance teams...
Leeds Building Society improves service for new-build homebuyers
Leeds Building Society has enhanced its new-build mortgage offering for homebuyers and mortgage brokers...
Arbuthnot Latham partners with Xactium
Arbuthnot Latham has chosen to implement the Xactium risk management system across the organisation...
FCA reports ‘notable’ urban-rural differences in how consumers experience financial services
There are “notable” differences between how consumers in urban and rural areas experience finance services, according to a new report by the FCA...
Digital banking fintech launches new product
Penta has launched a new product called Team Access whereby business owners can order MasterCards for their co-founders and co-workers...
Banking on the cloud: why moving core systems is no longer a distant possibility
Clearer regulation, greater flexibility and lower costs are behind banks’ increased use of the cloud for core activities such as anti-fraud, data hosting and analytics...
Starling Bank launches gambling blocker technology
Starling Bank has introduced a gambling blocker feature to help tackle betting addiction...
Triodos Bank provides £5m for Riverford employee ownership scheme
Triodos Bank has provided £5m of funding to help an organic veg box operation transfer 74% of the company ownership to employees...
Sainsbury’s Bank withdraws all base rate tracker products
Sainsbury’s Bank has removed all of its base rate tracker mortgage products with immediate effect...
Leek United extends mortgage offer period
Leek United Building Society has announced that it has doubled the offer period on its mortgages from three to six months...