IF you have water on both side, you just a dvider and not a dam. The band does not seem to be very steep. I think you can plant mild mannered shrubs. Something that typically grows under 10ft tall. Actual red osier dogwood or even pussy willow I think would be ok. Grey dogwood grows too big. Depending on the size of the pond and soil type, it could help you and not hurt. Soil erosion from wind.
If stone is cheap and easy to get, I'd line the edge with some grapefruit sized stones. While you getting stone, make like a garbage can sized pile of stone or two, perfect fishy fry hatching sites for certain fish speciies. Tying up and stackin dense brush then submerging it can be very good too.