Darling plans City oversight panel for BoE
Darling plans to bring in an oversight panel of eminent City figures in BoE overhaul to avoid another Northern Rock fiasco
Chancellor Alistair Darling wants to bring in an oversight panel of eminent
City insiders to the
Bank of England
(BoF) under plans to overhaul the central bank, making financial stability a key
function of its operations.
In return for supporting the appointment of Charles Bean, who is the choice
of Mervyn King, the BoE governor, for the deputy governor role, the chancellor
will demand the bank accepts more external advice on City issues and formal
oversight of its decisions on financial stability, the Financial Times reports.
This will feed in to both the governor and Sir John Gieve, the deputy
governor for financial stability, and it represents a significant change from
the Treasury’s initial reform plans in Januray for the Bank’s role in financial
stability.
Darling told the Commons yesterday: ‘we should learn from the example of the
monetary policy committee’, where outside experts were drawn in to help in
making interest rate decisions.
Further reading:
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Investment banks weigh into insolvency row
Read
the Financial Times story