The head of the new Scottish National Investment Bank has declared it will not be a “bail-out bank” for foundering ventures and says that, while big-hitters will be hired, pay levels will be capped.

Benny Higgins, 58, the former chief executive of Tesco Bank, also said there would be as much transparency as possible without compromising commercial confidentiality of those receiving investment cash.

He said he was given assurances from First Minister Nicola Sturgeon that the bank - with the only shareholder being the Scottish Government - will maintain autonomy from Holyrood, a pledge he also said was backed up by a "well-defined framework".

Analysis: Support for new Scots bank but 'devil in detail'

Mr Higgins, who also held senior roles at RBS and the former Halifax Bank of Scotland and was appointed in July to steer the bank towards its 2020 launch, said it would take on missions such as supporting low carbon projects but not general infrastructure, nor would it take on struggling assets.

The Glagow-born former Celtic youth team captain also said the bank would allow companies with cashflow but no collateral to expand and also help stimulate private investment.

He warned of Brexit "headwinds" but added "the country will need this kind of bank to replace some of the support it has had".

The bank is being funded by the SNP Government by £2 billion over its first ten years, however it also has access to money available from existing funding vehicles.

He said a public consultation raised questions over arms-length governance and remuneration.

Analysis: Support for new Scots bank but 'devil in detail'

Mr Higgins said the bank will "adopt the highest levels of integrity and transparency" and added "it is a pretty decent amount of money being put into the economy in a way that isn’t today".

The bank would "stand behind" defaults up to a certain percentage of high street bank's loans to firms.

The project has attracted a "huge amount" of interest from experienced people over potential roles and there is a process in place to "make sure that is all appropriately managed".

He said: "The bank in order to attract the kind of people who are able to do the job properly will have to pay people accordingly, however, we are not going to be chasing salaries at the top end of what’s possible.

"So the best way for me to put it is that I think that when we are recruiting senior people to run this bank we will be recruiting people, who albeit they will expect to be remunerated in a sensible fashion, that a motivation will be to make a difference.

"They are not going to come and work for us because we’ve out-bid other options they have."

Analysis: Support for new Scots bank but 'devil in detail'

He declared: "I think that there is a point at which Scotland could even lead the way in the collateralisation of intellectual capital, because it is very much the future.

"In an economy our size we could take the lead on that."

He acknowledged concerns over the under-drawing of funds already available through routes such as the Scottish Government's SME Holding Fund.

He said: "There has been an issue on it, there is no point in being disingenuous about that.

"The demand with respect to Building Scotland Fund and the SME Holding Fund hasn’t been anything like where it needs to be.

"But that is where we need to work hand in glove with the agencies."

He added: "When it is a bail-out situation it will be government working with enterprise agencies, that is the natural order."

The bank would expect to be included in bail-out conversations, however, he said .

Mr Higgins said a development bank "can make a big contribution by showing the patience that is required, not by not expecting to get very much money back, not by not expecting to get a return on capital, but by having a different risk appetite".