Andrew Bailey will become deputy governor for prudential regulation at the Bank of England as the central bank prepares for its new role as Britain’s financial regulator.
Bailey, currently managing director of the Financial Services Authority’s Prudential Business Unit, will take up the role on April 1, the Treasury said today in London. He will also become chief executive officer of the new Prudential Regulatory Authority. He took over as head of the PBU when Hector Sants stepped down in June last year.
The newly created role is part of a regulatory shakeup aimed at preventing another financial crisis. The plan also involves scrapping the FSA and transferring its powers to the central bank. Bailey will join Paul Tucker, deputy governor for financial stability, and Charles Bean, who oversees monetary policy, at the central bank.
“We have a big job ahead to ensure the U.K. has a stable financial system,” Bailey said in a statement. “There have been important and painful lessons from the financial crisis and we must ensure that the U.K. has a successful system of financial regulation.”
Chancellor of the Exchequer George Osborne said that putting the Bank of England at the center of regulation is an important measure.
“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,” he said.