The Department of Trade and Industry is encouraging moves towards the re-establishment of regional stock exchanges.

Patricia Hewitt, the trade and industry secretary, is reported to be interested in the potential of local bourses to bridge a funding gap for smaller and medium-sized enterprises in the regions.

"This is something which is being driven by individual regions, that is the point of devolution," a DTI official said.

"But we are open-minded and supportive of efforts to explore the possibilities."