Bailey took over Hector Sants’ duties on the Financial Policy Committee and Prudential Business Unit in the summer. As well as becoming deputy governor on 1 April, he will be appointed chief executive of the Prudential Regulation Authority. The position was created by the 2012 Financial Services Act.
Chancellor George Osborne said Bailey had the right skills and experience to lead the PRA as it moved into a new era of judgement-led supervision: “Putting the Bank of England in charge of prudential regulation is at the heart of the Government’s reforms to regulation of financial services.
“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.”
An employee of the Bank for over two decades, Bailey was responsible for the Bank’s special operations to resolve problems in the banking sector between the onset of the financial crisis and April 2011. He then joined the Financial Services Authority as deputy head of the Prudential Business Unit and director of UK Banks and Building Societies.
Questioned in January over the impact of Funding for Lending, Bailey told MPs the jury was still out on whether lenders had adjusted lending sufficiently in the wake of cheaper funding costs.
