Former Bank of Scotland chief to chair business bank

New bank set up by government.

Vince Cable: "this is a long term, durable institution". Photograph: Getty Images

Sir Peter Burt has been confirmed as chair of the group set to advise the government on the direction of the government's business bank.

The former chief executive of the Bank of Scotland has been appointed to the role as the government continues to attempt to revive the SME sector by increasing availability of finance.

Sir Peter said he is “delighted” and is looking forward to helping the government “tackle this problem and help provide long term finance solutions for SMEs.”

The new government-backed “business bank” is designed to lift the block on growth caused by the shortage of finance for firms that want to expand, but its size and workings are yet to be finalised.

Business secretary Vince Cable said finance is an “important gap in their growth cycle which the business bank will plug by offering new sources of finance."

“To help deliver this, the government will be advised by a talented panel of experts, led by Sir Peter Burt. It is important we get the development of the bank right," he added.

"This is a long term, durable institution, not a quick-fix gimmick, and I’m confident that we are on track to deliver this help."

This story originally appeared on economia.