East Mids is "important engine" in UK economy - Hester
The East Midlands is "a flourishing place for enterprise", according to Stephen Hester, chief executive of the Royal Bank of Scotland (RBS).
Hester told Insider that lending to the region's businesses was an important part of its strategy, adding that RBS turned into a company that was only interested in "growth for growth’s sake".
Acknowledging that banks had lost the faith of many in the business community, Hester said his mission is to "reconnect and get back what was lost".
Speaking to Insider at Nottingham Trent University, he said: "We need to show that we've changed – that we're building a very different type of organisation, which understands its responsibilities, which is being in business for the long term."
Hester said that RBS had become the 'poster child' for the 2008 crash, but added that banks had never been popular with the general public.
"You can look back to Shakespeare's time – to characters like Shylock – to see that people have always had a difficult relationship with money, but all our energy now is doing a great job for out customers. We want to be seen as part of the business community.
"I have a privileged position that I came in after the crash, and it would be a cheap response from me to say that I want to disassociate myself from what happened before at RBS. What I will say is that we all have to learn from our past, and learn from our actions," he said.
Calling the East Midlands an "important engine" for the UK economy, Hester said the region is a "flourishing place for enterprise".
"Last year we funded 7,000 start-ups in the region, and we also see ourselves as part of the East Midlands economy. Our job is to help the whole of the economy here," he said.
He said that RBS has lent £43.8m to businesses in the East Midlands under the Enterprise Finance Guarantee scheme, and had a total of £1.1bn in loan and overdraft balances outstanding to small busiensses in the region at the end of July.
Hester said he thought the economy would remain flat for the foreseeable future, and could escape without being detrimentally affected by the Eurozone crisis.
"What happens in Europe and the wider world is important, and we are of course influenced by what is happening in other countries, but each country has to do what it can to act more responsibly. Some countries are doing a better job than others at that," he said.
"I’m not saying the UK is part of some kind of virtuous group, but in my opinion the measures the government has introduced will get results. It’s going to be painful, but I’m confident the UK will get its own house in order."
Hester took over at RBS from controversial chief executive Fred Goodwin, and reportedly earns £1.2m a year with £7.7m in bonus and pension payments.
He acknowledged that the pay gap between the market and the weight of public opinion is "difficult to reconcile".
"There will always be areas of our business where some people will take issue, such as lending to the energy sector or defence companies," said Hester.
"However, we are genuine in our commitment to win back the public’s faith, and rebuild a culture within RBS which is both responsible and long-term in outlook, guided by firm principles."
