Removing frictions: Bank of England shares insights on financial stability and growth with North East businesses
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The North East Chamber of Commerce welcomed Nat Benjamin, executive director for financial stability strategy and risk at the Bank of England, to Newcastle last week for a member briefing hosted by Womble Bond Dickinson. Nat outlined how financial stability underpins the conditions in which businesses can invest, innovate and grow, and reflected on the Bank’s recent work to reduce barriers in the financial system that may be holding back productivity and long-term investment.
Nat highlighted that stability is often overlooked until it is absent, noting the long-term economic impacts of the 2008 financial crisis and the importance of ensuring the financial system supports investment rather than constrains it, while mitigating inherent risks. He highlighted areas where improvements could help businesses, including access to finance for high-growth businesses, the role of pension funds in unlocking capital, and how emerging technologies in the financial sector might be adopted safely and productively.
During the Q&A session, members asked how regional differences factor into the Bank’s thinking. Nat confirmed that variations in local economic structures matter, noting that sectors such as manufacturing and services face distinct productivity challenges that, in turn, shape each region’s financial requirements.
Questions also centred on scaling investment vehicles in regions like the North East. He observed that pooling investment capacity can reduce costs and increase capability, echoing national efforts to consolidate pension funds and ensure capital reaches productive parts of the economy. He added that while the Bank cannot implement all solutions directly, there are lessons from existing reforms that could help regions develop greater financial firepower.
Andrew Haigh, chief executive of Newcastle Building Society, who chaired the event, said: “Understanding how financial stability supports growth is hugely valuable for businesses in our region. The North East has real strengths and a growing sense of momentum, but businesses also need clarity and confidence in the financial environment if they’re to invest and scale.
“Hearing directly from the Bank of England helps underline where the opportunities lie and what needs to happen to ensure the system works efficiently for businesses here.”
Rhiannon Bearne, deputy CEO at the Chamber, said: “Meetings like this give our members direct access to the decision-makers shaping the financial environment businesses operate in. The North East has strong foundations; ensuring finance flows efficiently into productive businesses and emerging sectors will be key to unlocking further growth.”
The Chamber will continue to work with partners and policymakers to ensure North East businesses are well-positioned to benefit from improvements to the financial system and remain part of the national conversation on growth and investment.
The meeting took place at Womble Bond Dickinson’s offices on Wednesday, 3 December.
To read Nat Benjamin’s full speech, please click here.
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Image (l:r) – Andrew Haigh (Newcastle Building Society), Rhiannan Bearne (Chamber), Nat Benjamin (Bank of England), Simon Rowland (Womble Bond Dickinson), Mauricio Armellini and Chris Goodspeed (Bank of England)
