Banking for the Common Good

Gemma Bone Dodds wrote a report, published in March 2016, which called for a publically funded Scottish National Investment Bank which would, in conjunction with the creation of regional 'People’s Banks’, be able to invest in projects which private banks are unable or unwilling to fund.

The report, Banking for the Common Good, was a collaboration between Friends of the Earth Scotland, think tanks the New Economics Foundation and the Common Weal, and financial campaigners Move Your Money. It was presented at both Holyrood and Westminster.

This week, Scottish First Minister Nicola Sturgeon announced the creation of a new national investment bank as part of the Government Plans for Scotland 2017/18, to help the country deliver its economic vision. An implementation plan, which will consider its remit, governance, operating model and approach to the robust management of financial risk, is now being developed.

National investment bank

This week, Scottish First Minister Nicola Sturgeon announced the creation of a new national investment bank as part of the Government Plans for Scotland 2017/18, to help the country deliver its economic vision. An implementation plan, which will consider its remit, governance, operating model and approach to the robust management of financial risk, is now being developed.

Gemma, who is studying for PhD with the Centre for Urban and Regional Development (CURDS), at Newcastle University, said: “I was delighted when I heard the news and pleasantly surprised to hear that the idea has been taken forward so quickly from my report and the follow up ‘Blueprint for a Scottish National Investment Bank” by my colleague Laurie MacFarlane.

“The next step is finding out what the new bank will do and that is still to be decided. There is still work to be done to ensure that it can create the outcomes we need for a sustainable and just economy. I’ll be meeting with the rest of the report partners in the next few weeks to discuss ways we can continue to influence this process.”

Putting banking reform back on the agenda

Banking for the Common Good sought to bring banking reform back onto the political agenda, and in addition to the developments in Scotland, Labour Party policy in the UK now includes the creation of a banking system consistent with the model proposed by Gemma and her colleagues.

Gemma said: “When this idea was first announced by Labour, we were delighted to see that they had taken on board our model but had been even more ambitious in proposing it for the whole of the UK. I look forward to seeing the further development of banking reform over the next few years and playing whatever role I can in that process”.