Can devolution deliver inclusive growth you can bank on it

Description

With Devolution, Greater Manchester has an opportunity to encourage investment and inclusive growth by setting its own policy agenda. Dr Marianne Sensier puts the case for the creation of a regional bank within the new mayor’s policy agenda. A regional bank will provide finance for business and allow people to save their money which in turn will help develop the local community.

• Since the financial crisis of 2008 many regions of the UK have struggled and a large imbalance still exists between London and the South East and the rest of the country.
• Bank business lending contracted after the crisis and a recent government report suggests this is still an ongoing concern.
• Could lessons be learned from Germany that has a system of regional banks and actually increased lending to SMEs over the financial crisis?
• A regional bank tasked with a local economic development motive (rather than profit maximisation) could help provide more inclusive growth opportunities to struggling communities.