Remit
The inquiry is intended to assess the longer term consequences on the Scottish economy of the impact of the global financial crisis on Scottish financial institutions and to identify actions necessary to ensure that Scotland is well prepared to meet the challenges of the economic upturn with Scotland recognised as a leading financial services sector.
Terms of reference
After some initial ‘scene-setting’ to focus on the origins of the recent events in the sector and some of the causes identified by other inquiries undertaken elsewhere or currently ongoing, the inquiry will focus on the consequences going forward and how the public sector in Scotland can assist with the challenges ahead.
The inquiry seeks to answer the following key questions—
1. What is your view on the cause, nature and impact of the recent difficulties in the financial sector in Scotland?
2. What evidence do you have on the issue of the availability and the cost of credit and what effect have the initiatives undertaken by the banks, government bodies, regulators and others had?
3. What changes can be expected as part of the ongoing and future restructuring plans in the financial services sector within Scotland?
4. How might these changes affect the business and retail banking market in Scotland, access to project finance, a reduction in competition on the ‘high street’ for lending, the plans for the retention of functions and ‘headquartering’ etc and what can the public sector in Scotland do to ensure the best possible result for Scotland?
5. What are the current employment levels and skills base in the financial sector in Scotland and how may these change? Additionally, what are the types of jobs that might be expected to be lost as part of any restructuring plans?
6. How are employment levels in the financial sector calculated at present, under what definitions and how do these relate to ONS figures? What changes are required to make employment figures more meaningful and comparable with other financial centres?
7. What are your views on the current efforts across the public sector in Scotland to respond to the recent difficulties in the financial sector in Scotland and what, if anything, needs to change in the future as the situation develops?
8. Has Scotland’s reputation as a global financial services centre been detrimentally affected by the global crisis and has this been to any greater extent than the problems felt in other financial centres?
9. How should Scotland differentiate itself and promote itself as a financial services centre in the future and what steps are being taken by our competitors in this respect?
10. How can we ensure that the Scottish financial sector continues to retain a global perspective and does not retreat into a purely localised lending regime?
11. Why are "new" banks choosing to establish themselves in Scotland, what is it that is particularly attractive and how can we build on this and attract additional investment into Scotland?
Written Evidence
The closing date for written submissions was 11 September please use the link to view all the written submissions received by the Committee and the list of oral evidence sessions.
Response to the report
The following organisations have provided a formal response to the Committee's report:
Scottish Government (97.6KB pdf)
Association of British Insurers (44.5KB pdf)
Bank of England (56.3 KB pdf)
Financial Services Authority (16.3KB pdf)
Lloyds Banking Group (26.1KB pdf)
Office of Fair Trading (190KB pdf)
Virgin Money (221KB pdf)
Adviser
The Committee appointed Philip Augar to be its adviser for this inquiry.
Report
The Committee published its final report on 18 March 2010. |
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