Chancellor suggests more oversight for UK central bank to ensure financial stability
LONDON – UK Chancellor of the Exchequer Alistair Darling has laid out plans to bring in a panel of City experts to oversee the Bank of England in order to avoid another Northern Rock-type incident.
In a speech to the House of Commons, Darling insisted that the Bank of England must be instrumental in maintaining financial stability in the future. It is hoped the introduction of a panel will make the bank more alert to potential financial problems. Darling highlighted the effectiveness of the Bank of England’s interest rate setting Monetary Policy Committee, which is comprised of bank members as well as external city executives.
The plans were confirmed amid reports of tension between the chancellor and the bank's governor, Mervyn King, over the appointment of a deputy to replace the outgoing Rachel Lomax.
Darling is believed to be pushing for a deputy with a strong City background, while King favours Charlie Bean, currently the Bank's chief economist, who was a professor alongside the governor at the London School of Economics.King argues that he needs a deputy with a strong economics background to help him fight inflation, whereas the chancellor wants the bank to improve its financial stability expertise.
More on Regulation
EU authorities claim hands are tied by WGMR proposals on non-cleared margin requirements
Banks chase 5.2 million customers who are still to complain
Regulator announces reforms in response to financial crisis failings
Matherat to Deutsche, O'Malia to Isda - regulatory moves worry some
Sign up for Risk.net email alerts
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
In the February 2014 editorial video, OpRisk's latest industry survey finds room for improvement in risk management
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.