Establishment Of Scottish National Bank Takes Step Forward
28th February 2019
Legislation to support the establishment and capitalisation of the Scottish National Investment Bank has been published by the Scottish Parliament.
The Bill grants the necessary powers to set up the Bank which will provide financing for businesses through their whole life cycle and for important infrastructure projects to catalyse private sector investment. The Bank will be a public limited company and Ministers will be given the power to guide its strategic direction by setting missions that will address socio-economic challenges.
The Scottish Government has committed to investing £2 billion over 10 years to capitalise the Bank. The Bank will be operational in 2020 investing in businesses and communities across Scotland.
Brexit, and particularly a no deal Brexit, will increase demand for a Scottish National Investment Bank to provide essential support to continue to grow Scotland's economy throughout a challenging period.
Economy Secretary Derek Mackay said:"Today's Bill marks a significant step towards the establishment of the Scottish National Investment Bank.
"The Bank will become a cornerstone in Scotland's economic architecture supporting businesses across all stages of the business growth lifecycle, in addition to financing infrastructure to secure private sector investment. These steps will ensure we are delivering for the economy of today and ready to seize the opportunities of the future. With record low unemployment and further economic growth, we will continue to do all we can to stimulate the economy."
Strategic Adviser to the First Minister on the Scottish National Investment Bank Benny Higgins said:"Today we mark another important milestone on the path to the creation of the Scottish National Investment Bank. The Bank will play a critical role in ensuring that the Scottish economy is structurally fit for thriving in the 21st century. To do so effectively, it is essential that the Bank pursues close collaboration with the enterprise agencies and other parties that contribute to the well-being of the Scottish economy."
Director of CBI Scotland, Tracy Black said:"The introduction of the Scottish National Investment Bank (SNIB) Bill is welcome news for the Scottish business community. If used effectively, the SNIB could have a transformative impact by encouraging the greater patient capital investment needed to support infrastructure development in the long-term and catalyse private sector investment."
The Scottish Economy has its own set of unique challenges and there are wide regional variations in the Scottish Economy that require local knowledge and interventions making a clear and compelling case for a Scottish National Investment Bank.
Scottish National Investment Bank
We want to be more ambitious for Scotland, and to provide the financing that businesses need through every stage of their investment lifecycle. In the Programme for Government 2017 to 2018, the First Minister announced plans to establish a Scottish National Investment Bank.
Businesses in Scotland often find it difficult to borrow money over a longer term (10 to 15 years), known as patient finance. This will be a key focus for the Scottish National Investment Bank.
The Bank will support ambitious companies and important infrastructure projects. By aligning its aims and objectives with Scotland’s Economic Strategy, the Bank has the potential to transform and grow Scotland’s economy.
The Bank will be operational in 2020, investing in businesses and communities across Scotland.
We have committed to investing £2 billion over 10 years to capitalise the Scottish National Investment Bank, making it a cornerstone of Scotland’s economy.
We ran a public consultation on the Scottish National Investment Bank during September and October 2018 to help shape the Parliamentary Bill. This will be augmented by a series of 21 engagements with key stakeholders.
In February 2019 we published an independent analysis of responses to the consultation.