Charlotte Hogg's departure from her role as the Bank of England's deputy governor was "disproportionate" to her offence, according to directors of the Bank.
Hogg resigned from her role in March following a report by the Treasury select committee questioning her competence for failing to disclose that her brother works for Barclays.
Hogg joined the Bank as chief operating officer in 2013 and was appointed deputy governor in February this year.
“The outcome seemed to court members entirely disproportionate to the original offence,” said the directors of the Bank in a teleconference on 14 March, the day she resigned.
"Court [Bank’s Court of Directors] accepted Hogg’s resignation with great regret. It was noted that her departure came at a critical time and represented a material loss to the management of the Bank, to which Hogg had made a significant and lasting contribution," the directors said.
"The outcome seemed to Court members entirely disproportionate to the original offence, which in a supervised 2 firm under the senior managers’ regime would not have prompted either the PRA or the FCA to press for dismissal, and to set an unwelcome precedent for such firms."
Read more: Who exactly is Charlotte Hogg?
In her resignation letter to Andrew Tyrie, chairman of the Treasury Select Committee, Hogg said: "I should have formally declared my brother's role when I first joined the bank. I did not do so and I take full responsibility for this oversight."
Mark Carney, the Bank's governor, said at the time: “While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England.”