HM Treasury has today announced that Her Majesty The Queen has agreed, on the recommendation of the Chancellor and Prime Minister, to appoint Anthony Habgood as the Chairman of Court, and Dr Ben Broadbent as Deputy Governor for Monetary Policy. In addition, the Chancellor and the Governor have agreed to appoint Dr Nemat Shafik as Deputy Governor of the Bank of England responsible for Markets and Banking.
The appointments of Anthony Habgood and Dr Ben Broadbent are effective 1 July 2014. The appointment of Dr Nemat Shafik is effective 1 August 2014.
Mr Habgood, who was appointed for a renewable term of four years, will succeed current Chair Sir David Lees, who will leave at the end of June. As Chair of the Bank’s Court of Directors, Mr Habgood will lead Court in its responsibility for managing the affairs of the Bank, other than the formulation of monetary policy. Court's responsibilities include determining the Bank's objectives and strategy, and ensuring the effective discharge of the Bank's functions and the most efficient use of its resources. Since the 2009 Banking Act, the Bank has had a statutory objective to protect and enhance the stability of the financial systems of the United Kingdom and the Court, consulting HM Treasury and on advice from the Financial Policy Committee (FPC), determines the Bank's strategy in relation to that objective.
Mr Habgood will also chair the Oversight Committee of Court, which was established by the 2012 Financial Services Act. With a membership consisting entirely of Non-Executive Directors, the Oversight Committee reviews all aspects of the conduct of the Executive of the Bank, including the delivery of policy, the design of and adherence to rigorous processes and procedures, and the monitoring of the institution’s transparency and openness.
As the Bank’s Deputy Governor for Monetary Policy, Dr Broadbent will have specific responsibility for the Bank’s research and analysis of the UK economy in support of Monetary Policy Committee (MPC) decisions, and for the provision and distribution of bank notes that are secure against the threat of counterfeiting.
Dr Broadbent will sit on the Bank’s Court of Directors, the Monetary Policy Committee, and the Financial Policy Committee. He is also responsible for chairing MPC in the event of the Governor’s absence.
As Deputy Governor for Markets and Banking, reporting directly to the Governor, Dr Shafik will provide greater focus at the very top of the Bank on these two core policy areas. Dr Shafik will be appointed by the Governor to the Monetary Policy Committee (MPC) under Section 13(3)(b) of the Bank of England Act 1998 as ‘the person who has executive responsibility within the bank for monetary policy operations’, filling the seat currently held by Paul Fisher, the Bank’s Executive Director for Markets. The Government has indicated its intention to place this appointment on a statutory basis in due course. Once formalised,
Dr Shafik will hold seats on the MPC, the Financial Policy Committee (FPC), and the Bank’s Court of Directors. In addition, the Court of the Bank will appoint the Dr Shafik to the Board of the Prudential Regulation Authority. Dr Shafik will therefore join the Governor and the Deputy Governor for Financial Stability, Sir Jon Cunliffe, as a member of all three main policy committees.
In her role as Deputy Governor for Markets and Banking, Dr Shafik will be responsible for reshaping the Bank’s operations and balance sheet, including ensuring robust risk management practices and helping to lead the design and execution of an eventual exit from quantitative easing by the MPC. She will also oversee the implementation of reforms to the Bank’s Sterling Monetary Framework, lead the Bank’s work to build fair, efficient and effective financial markets, and review and strengthen the Bank’s Markets and Banking areas, including a comprehensive review of the Bank’s essential market intelligence function.
Dr Shafik will also be jointly responsible for the Bank’s international surveillance, analysis and engagement. She will represent the Bank in international groups and institutions, including as G7 Deputy and in the Bank’s engagement with the IMF, overseas central banks and the BIS.
Commenting on the appointments, the Governor of the Bank of England, Mark Carney, said:
“I am delighted that individuals of the calibre of Ben Broadbent, Minouche Shafik and Anthony Habgood will be joining the Bank’s leadership group. With a diverse combination of skills and experience, these appointments result in a well-rounded senior management team at the Bank – one that will set the direction for an ambitious agenda of transformation for the institution and enable it to meet the challenges and opportunities it faces in maintaining monetary and financial stability.
“I would also like to thank Sir David Lees for the invaluable support and advice he has given to me over the past eight months, and to the Bank’s senior management more broadly over the past five years.
“Finally, I would like to take the opportunity to extend my sincere thanks to Charlie Bean for his exemplary contributions to the Bank, and to public service, over the past fourteen years – first as Chief Economist and Executive Director for Monetary Analysis, and since 2008, as Deputy Governor for Monetary Policy. Charlie has played a central role at the Bank during the most challenging of times, and his presence at the Bank, and in international groups, will be greatly missed.”
Mr Habgood said:
“I am delighted to join the Court at such an interesting time. I look forward to working with Mark Carney and my new colleagues.”
Dr Broadbent said:
"I am honoured to be able to continue serving the British public in this new role as Deputy Governor for Monetary Policy of the Bank of England. I have found my role as an external MPC member immensely rewarding, and I look forward to working with Mark Carney, my future fellow MPC and FPC members, and all Bank staff in this new capacity, as we work together to maintain monetary and financial stability.”
Dr Shafik said:
“I am excited to be joining the Bank at such a critical time of institutional change, and I look forward to fulfilling this challenging new role on the Bank’s senior leadership team, as we re-shape the Bank’s balance sheet, review and strengthen the Bank’s operational roles, and, through continued international engagement, reform financial markets for the post-crisis world.”