2014 Donal Nevin Lecture focuses on investment-driven growth, job creation
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The need for increased investment through a new approach to banking in Ireland was a key theme of the Nevin Economic Research Institute’s (NERI) second annual Donal Nevin lecture delivered this afternoon by Professor Stephany Griffith-Jones, Financial Markets Director at the Initiative for Policy Dialogue, Columbia University.
Professor Griffith-Jones focused on the role public investment banks, such as Kreditanstalt für Wiederaufbau (KfW) in Germany, can play in boosting Ireland’s economic recovery, and made specific proposals on how investment focussed promotional banks can increase levels of growth and job creation.
Speaking before the event, Professor Griffith-Jones said:
“Public investment banks provide the vision and long-term finance that help sustain investment, innovation and job creation particularly when private lending on its own is not sufficient.”
“A significant level of lending is required for public investment banks to have a positive impact on the economy. In Germany the state owned KfW bank accounts for 12.7% of total bank credit in the domestic economy”, Prof Griffith-Jones added.
Welcoming Professor Griffith-Jones, NERI Director Dr Tom Healy noted the recent commitment to increase lending to SMEs through the Strategic Banking Corporation of Ireland.
“In the context of the current housing crisis, we should look at options for using a state investment bank to finance a large scale social housing programme. Investment in this area would help address a basic social need while having a positive impact on the economy”, Dr Healy said.
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