Investment banking good for region’s growth, says report

Jes Staley

The capital markets are providing major support to jobs and growth in the North West of England, according to a new report by think thank New Financial, and backed by the chief executive of Barclays, Jes Staley.

The Impact of Capital Markets on People’s Everyday Lives – North West study reveals more than 100,000 jobs in the region are supported by banking and finance directly, with a further 900 firms in the North West benefiting from capital markets investment, supporting a further 600,000 jobs.

More than 100 North West firms, including, The Hut Group, and Manchester Airports Group, have raised more than £35bn in the equity, corporate bond and syndicated loan market in the past five years.

A further 1,100 high-growth companies have received £2bn investment through venture capital, business angels and alternative lending.

Public infrastructure has also benefited from the investment from local authority pension funds and from the European Investment Bank into projects such as the Port of Liverpool upgrade, while the University of Liverpool also accessed the corporate bond Market to finance £250m for residential investment.

The report also finds the regional activity of giant firms such as BAE Systems would have a market value of more than £4bn in the North West alone, with £6bn of pension assets invested in, and nearly £1bn raised through, the capital markets.

Jes Staley said: “Whilst not always obvious, the ability to access the global capital markets has allowed the North West to thrive and amplify the potential of its highly talented workforce.

“We must shift away from relying on traditional bank lending and instead broaden the means through which businesses and entrepreneurs access capital and financing.

“The answer lies in healthy, diverse capital markets.”

Jon Glen MP, economic secretary to the Treasury, added: “This report offers valuable insight into the positive impact capital markets can have on cities such as Manchester and Liverpool – not just the City of London.”