Bank of Canada Governor Mark Carney said he will make sure the committee structure of the Bank of England works to its “full effect” when he takes over and that his new job is not about one individual.
“I would make the distinction between the responsibilities of the institution and the power of any individual within that institution,” Carney said at a press conference in Ottawa yesterday. “Part of my responsibility when I am there is, that as the Bank of England gets additional responsibilities on the micro- and macro-prudential side, to ensure that the committee structure, the new governance structure, the other aspects, work to their full effect.”
Carney will succeed Bank of England Governor Mervyn King in July as the central bank adds financial-regulatory powers to its monetary-policy remit. His comments come a day after former BOE policy maker Adam Posen said King exerts too much power that goes unchallenged by officials at the central bank.
Carney said part of his role will be to “ensure that the institution is discharging its responsibilities in the right way, it’s not relying on a single individual and it won’t be.”
Posen, who left the U.K. central bank in August, told lawmakers at a post-Monetary Policy Committee “debrief” that the central bank’s supervisory court and the Treasury were unwilling to challenge King on some issues. He also said the governor should be more of a chairman than an executive and delegate more responsibility to his deputies.
Carney declined to comment yesterday on Posen’s remarks.
Asked about the Bank of England’s response to the financial crisis and recession, Carney said policy makers did an “admirable job under extremely difficult circumstances and I would stand four-square behind them.”
“I’m not yet the governor of the Bank of England as you know, and I’m very happy that Mervyn King is going to serve there through the end of June,” he said. “There’s no issue in terms of how they’ve conducted themselves.”