Ben Broadbent, the Bank of England deputy governor responsible for monetary policy, including monetary analysis and notes, has been appointed by governor Mark Carney, to take a seat on the influential Prudential Regulation Authority (PRA) board.
The appointment is in conjunction with structural reform of the Bank’s governance, following the breakup of the former Financial Conduct Authority (FCA). Carney has the power to award one position on the PRA board, while Chancellor Philip Hammond appoints the six external members.
Previously, the PRA was legally part of the BoE, but the changes mean the PRA board, which is the governing body of the PRA, will be replaced by a new committee, the Prudential Regulation Committee (PRC). The PRC will be equal in status to the existing Monetary Policy Committee (MPC) and the Financial Policy Committee (FPC).
Broadbent became deputy governor on 1 July 2014. Prior to that, he was an external member of the Monetary Policy Committee from 1 June 2011. The former Goldman Sachs economist holds a doctorate from Harvard University and will take up his position as a member of the PRC on 1 March.
Bank of England governor, Mark Carney said:
The creation of the Prudential Regulation Committee tomorrow will deliver a simpler and more coherent governance structure within the Bank, while ensuring that the Prudential Regulation Authority remains strongly focused on its statutory objectives.
Ben’s appointment brings macroeconomic and microprudential perspectives even closer together within One Bank to promote the safety and soundness of PRA-supervised banks and insurers.