The UK Treasury has named Andrew Bailey as deputy governor of the Bank of England (BoE) and said he will become chief executive officer (CEO) of the bank’s Prudential Regulation Authority (PRA) when the new watchdog comes into existence on 1 April 2013.
Bailey, who joined the BoE in 1985, formerly served as its chief cashier and since April 2011 has served as deputy head of the prudential business unit at the Financial Services Authority (FSA), which will be replaced at the end of next month. The FSA’s banking supervision role will transfer to the PRA, while the Financial Conduct Authority (FCA) will take on the responsibility of regulating financial firms that provide services to consumers.
“Andrew Bailey has the right skills and experience to lead the PRA as it moves into the new era of judgement-led supervision,” said the UK chancellor, George Osborne. “Putting the BoE in charge of prudential regulation is at the heart of the government’s reforms to regulation of financial services.
“It will be a tough, forward-looking regulator, focused on the stability of banks, other deposit takers and insurers - and with a mandate to protect policyholders.”
A statement issued by Bailey said: “I am very honoured to have been chosen for this role and excited to see the PRA taking shape. We have a big job ahead to ensure the UK has a stable financial system made up of banks, insurers and investment firms able to support activity in the economy and the needs of the public.
“There have been important and painful lessons from the financial crisis and we must ensure that the UK has a successful system of financial regulation now and for the future.”