This paper is the final paper in ACE’s infrastructure investment series and explores in more detail the rational and practicalities of establishing a State Investment Bank.

Key areas explored in the paper:

• A State Investment Bank could play an important role in long term economic policy
• A State Investment Bank would help to stimulate housing supply
• Given the importance of SME finance, it should remain separated from the task of investing in infrastructure.
• State aid approval is required for a State Investment Bank
• A State Investment Bank is not a one stop shop to fix for endemic investment problems
• A State Investment Bank needs to make profit and invest returns.
• Building a skills base for a State Investment Bank is vital
• The change in financial regulatory landscape needs to be factored into a State Investment Banks design
• The scale of capitalisation for a State Investment Bank is important
• The banking levy could provide a significant degree of the capital for a State Investment Bank
• A State Investment Bank requires a solid plan as to its capitalisation proces
• Could the government scale down Royal Bank of Scotland (RBS) into a State Invsestment Bank?
• A clear roadmap would be needed to scale up the GIB to a full State Investment Bank.

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