FCA's Bailey is confirmed as Carney's successor at Bank of England

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FCA's Bailey is confirmed as Carney's successor at Bank of England

UK Financial Conduct Authority (FCA) chief Andrew Bailey has been confirmed this morning as the next governor of the Bank of England (BoE), from 16 March 2020, replacing Mark Carney.

UK chancellor Sajid Javid said: "When we launched this process, we said we were looking for a leader of international standing with expertise across monetary, economic and regulatory matters. In Andrew Bailey (pictured) that is who we have appointed."

"Andrew was the stand-out candidate in a competitive field. He is the right person to lead the Bank as we forge a new future outside the EU and level-up opportunity across the country.

"I also want to take this opportunity to thank Mark Carney for his service as governor. The intellect, rigour and leadership he brought to the role during a critical time was a significant contribution to the UK economy moving to recovery and growth."

Bailey added: "It is a tremendous honour to be chosen as governor of the Bank of England and to have the opportunity to serve the people of the United Kingdom, particularly at such a critical time for the nation as we leave the European Union.

"The Bank has a very important job and, as governor, I will continue the work that Mark Carney has done to ensure that it has the public interest at the heart of everything it does. It is important to me that the Bank continues to work for the public by maintaining monetary and financial stability and ensuring that financial institutions are safe and sound.

"I am committed to the Bank being an accessible and approachable institution, as well as an open and diverse place to work. I would like to pay tribute to my colleagues at the Financial Conduct Authority for their support during my time as chief executive and the excellent work they do."

Mark Carney commented: "I am delighted to welcome Andrew Bailey back to the Bank as its next governor. An extraordinary public servant, Andrew brings unparalleled experience, built over three decades of dedicated service across all policy areas of the Bank, and most recently as CEO of the FCA."

"Andrew is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses."

"Over the years, I benefited greatly from his support and wise counsel.  I wish Andrew and the Bank continued success in their work to serve the people of the United Kingdom by maintaining monetary and financial stability."

Phil Smeaton, chief investment officer at Sanlam UK, said Carney had "overseen one of the most tumultuous period in the UK's political and economic history".

"Now, however, Boris [Johnson's] newly revitalised government is set to being certainty to the UK, boost fiscal spending on infrastructure and core public services, and allow business to unleash its pent up investment demand," he continued

"Such a backdrop is a stark difference to the quagmire the Carney was forced to slog through, and though tackling the economic challenges of a departure from the EU is still the top priority for Andrew Bailey, he will also need to balance the inflationary risks against subdued global growth."

The FCA's CEO has long been favourite for the role but his chances had seemed to have been hit by a string of scandals in recent times. The City regulator's role in the Woodford liquidity crisis has been widely criticised, for instance.

However, Bailey, who was formerly deputy governor of the BoE, remained in the hunt, and will become the 121st BoE Governor in its history.

 

This article was first published by sister website www.investmentweek.co.uk