The UK Government has proposed plans to advertise the job of the Bank of England’s Governor’s post, after the current Governor Mervyn King’s stint as the head of the BoE comes to an end in June 2013. The advertisement for the post of BoE Governor will be published in this Friday’s “Economist” journal.
Previously the selection of the BoE Governor’s post was usually a private matter between the Prime Minister and the Chancellor. The usual term of the BoE’s Governor post is for five years. Sir Mervyn King has been the governor for the Central bank for two consecutive terms, after taking over in June 2003 from the previous BoE Governor Sir Edward George.
The adverstiment called for a “person of undisputed integrity and standing“, clearly sending out a message to the banking sector which has been hit by one scandal after another and gross mismanagement.
Among the likely probably candidates for the BoE’s Governor post include the Adair Turner, Chairman of the FSA, Gus O’Donnell and Paul Tucker, who is currently the deputy governor of the BoE. Amongst the three, Paul Tucker faces criticism for not spotting the LIBOR scandal. However, even the other two contenders are not free from flaw due to their past connections to regulation, policy making or commercial banking.
Sir Mervyn King’s tenure ends in June 2013, after being the head of the Central bank for two consecutive five year terms.
Previous appointments to the post of the BoE’s governor was mostly a private affair, involving the Prime Minister and his Chancellor.
By attempting to advertise the coveted post, there is a subtle message to clean up the banking sector whose image has been tarnished recently by many scandals.
The Government noted that the appointment of the new Governor would be fair and transparent, whilst looking for a person of intelligence and integrity, Chancellor George Osborne told the parliament on Tuesday.
HM’s Treasury department said that George Osborne is eager to hear from a wide spectrum of applicants.
The task ahead for the new Governor will clearly be the £375 billion asset purchase program and how to scale down the level of injecting money into the economy which shows no significant signs of recovery well into next year.
The Queen will be appointing the new BoE governor based on recommendations from George Osborne and David Cameroon.
Applications for the post of the BoE Governor are due to be closed on the 8th of October after which shortlisted candidates would be called in for interview by the Parliament’s Treasury Committee, before the recommendations are made to the Queen.
The final decision is like to be announced on the 5th of December.
About the Bank of England
England’s Central bank, or the (Bank of England) BoE is was referred to as “the Old Lady of Threadneedle Street” is pivotal to the financial and banking sector in the UK and serves the primary purpose to maintain financial, economic and monetary stability. The Central bank was formed in 1964 initially to serve the purpose as the Government’s bank and also as a debt manager. It was nationalized in March 1946 and became an independent authority from the Government only in 1997.
Structure of the BoE Executive Board. Source: Bank of England
Related Reading on BoE Governor’s Post
- Sky News has a rather satirical take on the advertisement that is worth reading
- Wikipedia on Bank of England
- Bank of England Website
