UK central bank governor Andrew Bailey has reinforced his support for the movement to encourage UK pension funds and institutional funds to invest more in UK companies.

In a speech at the Global Investment Summit in Edinburgh, Bailey said there exists “a real opportunity to generate external institutional capital into high potential companies.”

The Bank of England governor said the Scottish National Investment Bank “is seeking to support longer term investment projects.”

Bailey outlind what he called “untapped opportunities” for this type of investment.

“… we must do all we can to ensure the domestic investment environment – by which I mean the institutions and individuals who direct investment to where it is needed – is supportive,” said the central banker.

“The Mansion House reforms and the reforms proposed by the Government are intended to increase the level of investment by UK pension funds in the real economy, in other words in British businesses.

“I too am a strong advocate of these reforms.

“Not only do they make good business sense for pension funds, but they will demonstrate a level of commitment to growth in the economy and to the British public.

“Likewise, the British Business Bank, which is the largest investor in UK venture and venture growth capital funds, is increasing its commitment to create more growth capital in UK unlisted high potential companies.

“And, here in Scotland the Scottish National Investment Bank is seeking to support longer term investment projects, as is the National Wealth Fund at a UK level.

“I have no doubt there are untapped opportunities for this type of investment, that much is clear from my visits around the country.

“These developments provide a real opportunity to generate external institutional capital into high potential companies.

“This summit is well timed. I am, to repeat, glass half full when it comes to the opportunities for investment, innovation and growth. The reason? I spend time going around the country visiting companies, talking to start-ups. It’s that simple.”

Bailey addressed the issue of the UK central bank’s name.

“I should start by explaining that the Bank of England, despite its name, is by no means solely an English institution,” he said.

“We serve the people of the United Kingdom, right across our country. To that end we have twelve regional agencies covering the whole country.

“These agents are our eyes and ears on the economy, talking every day to a large number of business contacts about their experiences and expectations.

“Our Agent in Scotland, Will Dowson is here today, and if you want a real read on the Scottish economy I highly recommend a conversation with Will.

“I undertake regular visits with all of the Agents, and I can let you into a secret, it’s the most fun part of my job.

“I love spending time with businesses, talking to people from Peterhead to Penzance, and getting their up to date assessment is invaluable assistance in our role of setting interest rates.”