Carney worried regulators don’t work together

Tim Wallace
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THE VARYING arms of the Bank of England will be pushed to work together more closely as part of major reforms expected to be unveiled by Mark Carney tonight.

Under Carney the Bank has significant new regulatory powers, and the governor is worried staff in different units are too distant from each other.

Last year’s expansion of powers took some staff from the former Financial Services Authority to create the Bank’s prudential regulation authority, while the Bank also formed a new financial policy committee. There are fears of a subsequent culture divide between staff in these divisions and those working in other parts of Threadneedle Street.

To help align the teams working on monetary policy and regulation more closely, Carney is likely to create roles that cross departments to encourage more interaction.

In October he hired McKinsey to review the Bank’s strategy, helping him develop a medium-term plan.

Carney is also set to announce a new deputy governor for monetary policy, replacing Charlie Bean. The bookies’ favourite is London Business School professor Dr Lucrezia Reichlin.

And the role of chair of the Bank’s court of directors will be taken up by Reed Elsevier and Whitbread chair Anthony Habgood, Sky News has reported.