Bailey named next Bank of England governor
● Former deputy governor and chief cashier handed the top job
Andrew Bailey, the head of the Financial Conduct Authority (FCA), has been announced as the next governor of the Bank of England.
A former deputy governor and chief cashier of the Bank, Mr Bailey was confirmed for the role by Chancellor Sajid Javid after a selection process that first started two years ago.
The Chancellor said Mr Bailey was the “stand-out candidate” and is a “leader of international standing”, as he was handed the top job with a salary of £495,000.
Mr Bailey’s pay is higher than Mr Carney’s – who took a salary £480,000 – although he will not be entitled to a housing allowance, unlike his predecessor.
Mr Javid added that the FCA chief had already been identified before the recent general election, but it was decided to make the appointment following the result. A shortlist of candidates was drawn up and interviewed by a panel of experts, before the Chancellor conducted interviews over recent months and recommended Mr Bailey to the Prime Minister. Mr Bailey had been one of the long-term favourites to take over the position but has come under heavy scrutiny during his tenure at the FCA amid a series of major personal
New Bank of England Governor Andrew Bailey may not be a household name, but it is fair to say his name has certainly been in virtually every home in the country.
As chief cashier at the Bank in the noughties, it was his signature on every banknote, promising the value of the cash.
He was in that role when he earned his moniker as a safe pair of hands, as he played a key role in the state bailout of Royal Bank of Scotland and Lloyds Bank at the height of the financial crisis.
The Leicester-born grammar school boy impressed ministers so much that he was given the top job at the Financial Conduct Authority by then chancellor George Osborne in 2016. finance scandals, including the £236 million collapse of London Capital and Finance.
The new governor will start on 16 March, with Mr Carney agreeing to extend his own leaving date until then. He was due to step down at the end of January.
An interim chief executive of the FCA will be announced shortly, with a process to find a permanent replacement in the new year.
Mr Javid said: “There was one clear front-runner who I had no clear hesitation in recommending to the Prime Minister.
“I’m delighted to announce that the next governor of the Bank of England will be Andrew Bailey.”
The Chancellor also said all political parties “agree that the independence of the Bank of England is essential” to a strong economy, and the appointment transcended party lines.
“What matters is that we appoint someone who can make the right decisions for British businesses and families, and can do so over the long term,” the Chancellor said.
Mr Bailey will take on the role for the full eight-year tenure and the Treasury select committee will be able to question him ahead of his start date, the Chancellor added.
When asked whether candidates’ views on Brexit had played a part in the selection process, Mr Javid said: “The only consideration was finding the best person for the job.”