The Solent region will have a bank that meets the investment needs of residents and SMEs to enable them to develop, including investing in green technology projects to commercial application and funding energy efficiency & renewable energy projects. The CIB is to be based on the Sparkassen model, which is the backbone to the successful local banking system in Germany.
How it delivers the priorities
Priority 1: New Low Carbon & Green Technology
A CIB would provide a source of finance to help take forward the commercial application of green technology research and development and fund the set up of new business ventures within the green technologies & services sectors as well as the expansion of existing green SME businesses. It will also support business investment generally, meeting the needs of local businesses that is not currently met by international banking which is isolated and therefore does not have knowledge of the local economy or business community.
Priority 2: Resource Efficiency in Homes and Businesses
A CIB would be a source of capital for businesses to invest in energy saving and waste minimising measures.
Priority 3: Generation of Secure, Renewable & Low Carbon Energy in the Solent
A CIB would be a source of finance for businesses of various sizes and local authorities to invest in renewable and low carbon energy schemes
How it delivers the expected outcomes
Promote business growth
Provides investment to existing or new businesses to encourage and promote business growth. Would attract depositors from the Solent area and therefore ensure that money is retained for investment within the local economy.
Create new/safeguard jobs
Investment and business growth provides the means of maintaining a current workforce or employing a larger work force if required
Develop an appropriate skills base
Investment into new business may require new skills set. Investment also provides the means of attending courses or education and skills training.
Measureable carbon reductions
Investment will be made to existing or new businesses will an interest in maintaining their position or breaking into the sustainability and renewable energy industry.
This seminar explored the business case for the establishment of a local bank in Hampshire and how local banks elsewhere in the world help local governments deliver local economic growth and sustainable development. There were a number of presentations from professionals with background and experience in setting up local banks, in economics and in finance, including Dr Jürgen Engle from the Sparkassen Foundation.