Rachel Reeves mulls hiring ‘outsider’ for banking watchdog role
Chancellor Rachel Reeves is looking to hire a City heavyweight to succeed Sam Woods as the chief executive of the main banking watchdog once his term ends in the middle of next year, it has been reported.
Sam Woods’ term as chief executive of the Prudential Regulation Authority (PRA), the watchdog which is part of Bank of England that regulates banks and insurers, is set to end in nine months, triggering a recruitment process for his successor.
The Treasury could advertise the job within days, according to reports, with the process set to last for months.
It could pick one of its former civil servants, who is now a senior Barclays executive, for the role.
Katharine Braddick, the head of strategic policy at Barclay who worked at the Bank of England and was the top Whitehall official in the financial services department at the Treasury, has been floated as a possible candidate for the role, Sky News has reported.
Braddick previously led banking policy at the Financial Conduct Authority (FCA) and worked at the PRA.
Her appointment would be unusual given successors to the role have been taken from within the public sector in previous years.
One internal candidate may reportedly be David Bailey, the Bank of England’s executive director for prudential policy.
A Treasury spokesperson told Sky News: “Growing the economy is the Chancellor’s number one mission.
“Every regulator has a part to play by regulating for growth not just risk.”
Banking regulators going for growth
The new hiring process comes as City regulators have been mandated to push for growth under the government’s mission.
Nikil Rathi was appointed by Reeves as the FCA’s chief executive for a second term beginning in April this year.
He told Morning Wire earlier this year that he would accelerate its processes as part of efforts to drive growth in the financial services sector.
“We have an opportunity in the UK… to really put our effort and focus behind moving fast,” he said.
“Agility is going to be critical for us – and it’s a critical competitive advantage if we get it right.”
The government has meanwhile pledged to take down quangos in order to make the UK’s regulatory system easier for the private sector to drive investment.
Government officials have pointed to the problems the banking sector faces, for example, in dealing with eight regulators. The Financial Ombudsman Service is set to have some of its powers stripped while Reeves’ Leeds Reforms saw red tape slashed for big institutions.
Business secretary Peter Kyle has also spoken about Labour’s desire to slash 25 per cent of the regulatory burden faced by firms.
The PRA has also identified a number of regulations that have “overlapping and complex requirements” as it is also looking to ease administrative costs for banks by around £26m.