trending Market Intelligence /marketintelligence/en/news-insights/trending/2kkz_ygf-fxoiylmt7reca2 content esgSubNav
In This List

Scotland outlines plan for state investment bank

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Scotland outlines plan for state investment bank

Scotland has detailed plans for a publicly owned investment bank that will invest in smaller businesses and strategic projects.

The country's government on Feb. 28 disclosed an implementation plan setting out recommendations covering the remit, governance, operating model and financing of the Scottish National Investment Bank, set to open in 2020.

The plan, developed by outgoing Tesco Bank CEO Benny Higgins, recommended that the bank be supported by a long-term capitalization of at least £2 billion over the first 10 years; that it become self-sustaining in the longer term and raise its own capital to fund investments; that it provide long-term funding for smaller firms and larger projects; and that it create investment opportunities and new markets for the private sector.

The government has provided the bank with initial public capital of £340 million for 2019 to 2021 as part of its draft budget for 2018 to 2019, which also established a new £150 million Building Scotland Fund for 2018 to 2020. The government proposed that the fund's remit and its investments be transferred to the bank between 2019 and 2020.

The plan also recommended that Scottish ministers appoint the bank's chair and its nonexecutive board members, with executive management appointments to be made by its board.

The recommendations will be considered by Scottish ministers, with a formal response expected to be announced in the spring.