Banking watchdog chief appointed

Andrew BaileyAndrew Bailey has been formally appointed as deputy governor of the Bank of England in a role that will also see him head up Britain's new banking watchdog.

In his dual position as chief executive of the incoming Prudential Regulation Authority (PRA), he will take on responsibility for oversight of banks, building societies, credit unions, insurers and major investment firms.

Mr Bailey, who joined the Bank in 1985, takes on the post on April 1 and will become one of three deputy governors.

Chancellor George Osborne said: "Andrew Bailey has the right skills and experience to lead the Prudential Regulation Authority as it moves into the new era of judgment-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."

Mr Bailey has worked in a number of areas at the Bank, most recently as executive director for banking services and chief cashier, as well as head of the bank's special resolution unit, which helped steer HBOS and Royal Bank of Scotland through their mammoth bailouts at the height of the financial crisis.

In April 2011, he was appointed as deputy head of the prudential business unit and director of UK banks and building societies at the Financial Services Authority (FSA).

A year later, he became managing director of the FSA's prudential business unit, with responsibility for the prudential supervision of banks, investment banks and insurance companies.

Outgoing Bank governor Sir Mervyn King, who is being replaced by Bank of Canada boss Mark Carney in July, said: "I have worked closely with Andrew over the past 10 years and I know he is the right person to lead the PRA in the years ahead."

Under the shake-up of financial regulation, the new PRA will take over the prudential operation of the FSA, which will see it ensure bank balance sheets are strong enough to withstand shocks.