Bailey calls for clearer aims

Clear public policy objectives must be laid down if regulators want to create the best chance of achieving financial stability, executive director at the Bank of England Andrew Bailey told a conference at the Said Business School in Oxford yesterday. Bailey – who is also deputy head of the Financial Services Authority’s prudential business unit – pointed to the Bank of England’s target of keeping inflation low and steady as an example of a strong policy framework with a well-explained key objective. He said the regulators’ objective should be clear and well explained, and seek to protect the wider financial system from the collapse of any individual institution.