Andrew Bailey has been formally appointed as Bank of England deputy governor and Prudential Regulation Authority chief executive.
Bailey is currently the managing director of the FSA’s prudential business unit, with responsibility for banks, investment banks and insurers.
Former FSA chief executive Sir Hector Sants was originally expected to head up the PRA under the new regulatory structure. Following Sants’ resignation last March, Bailey quickly emerged as the favourite to replace Sants in the PRA’s top role, and was appointed interim head of the prudential unit before being appointed to the managing director role in July.
When the new regulatory structure comes into force on 1 April, Bailey will also be a member of the Bank’s Court of Directors and a member of the Financial Policy Committee.
Chancellor George Osborne says: “Andrew Bailey has the right skills and experience to lead the PRA as it moves into the 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.”
Bank governor Sir Mervyn King, says: “I am delighted Andrew Bailey is to be the new deputy governor with responsibility for the PRA. I have worked closely with Andrew over the past ten years, and I know he is the right person to lead the PRA in the years ahead.”
Andrew Bailey says: “I am very honoured to have been chosen for this role and excited to see the PRA taking shape.
“We have a big job ahead to ensure the UK has a stable financial system made up of banks, insurers and investment firms able to support activity in the economy and the needs of the public. There have been important and painful lessons from the financial crisis and we must ensure that the UK has a successful system of financial regulation now and for the future.”