Mark Carney, currently Governor of the Bank of Canada, has been named
Governor of the Bank of England as the UK central bank is set to assume
regulation of the financial system and financial institutions under thw new twin
peaks regulatory regime being adopted in tghe UK in gthe wake of the financial
crisis. The Prudential Regulatory Authority (financial system and financial
institutions) and the Financial Conduct Authority (securities markets and
financial intermediaries, such as brokers) will replace the unitary regulatory,
the Financial Services Authority. Chancellor of the Exchequer George Osborne
said that Mr. Carney did a brilliant job for the Canadian economy as its central
bank Governor, avoiding big bail outs and securing growth. He also chairs the
Financial Stability Board, charged with strengthening global financial
regulation after the financial crisis.
Along with its central role in monetary policy, said the Chancellor, the
Government has put the Bank of England back in charge of regulating our
financial system so the UK does not repeat the mistakes of the last decade. Mark
Carney is the perfect candidate to take charge of the UK central bank as it
takes on these vital new responsibilities, said the Chancellor.
The Financial Stability Board, chaired by Gov. Carney, has been ther job of
aiding in the harmonization of financial regulations by the G-20 leaders and
G-20 Finance Ministers. In that capacity, the Board has issued principles of
executive compensation, among other areas.
Mr. Carney will take over as UK legislation enacting a UK version of the
Volcker Rule looms next year. Based on the Vickers Commission recommendations,
the legislation will ring-fence a retail bank inside a holding company and
prohibit the bank from engaging in proprietary trading and sponsoring hedge
funds.