ANDREW Bailey – the architect of the recently introduced rules for peer-to-peer lending – has been chosen as the next governor of the Bank of England.
Bailey (pictured) will take over from current governor Mark Carney on 16 March 2020, and he will serve in the role until March 2028.
Previously, Bailey acted as the head of the Financial Conduct Authority (FCA), where he took an active role in the regulation of P2P lending and alternative finance.
Speaking to Peer2Peer Finance News in 2017, he said that he was “pretty worried” about the way P2P is sold to consumers. He went on to draft a series of stringent new risk management rules for the P2P sector, which included introducing appropriateness tests for new lenders, restricting retail investors to putting just 10 per cent of their portfolio into P2P loans, and forcing all platforms to establish realistic wind-down plans.
These rules officially came into force on the 9 December, and were met with a mixture of apprehension and optimism by the P2P community.
In November, Bailey told Peer2Peer Finance News that he was aware that the sector “hasn’t been happy with concentration [rules]” but added, “I do think that it’s sensible risk management”.
In his new role as governor of the Bank of England, Bailey will be responsible for setting the base rate – which has been stuck at 0.75 per cent since August 2018. He will also lead the national economic and monetary policy during the ongoing Brexit process.
“It is a tremendous honour to be chosen as governor of the Bank of England and to have the opportunity to serve the people of the United Kingdom, particularly at such a critical time for the nation as we leave the European Union,” said Bailey.
“The Bank has a very important job and, as governor, I will continue the work that Mark Carney has done to ensure that it has the public interest at the heart of everything it does. It is important to me that the Bank continues to work for the public by maintaining monetary and financial stability and ensuring that financial institutions are safe and sound.
“I am committed to the Bank being an accessible and approachable institution, as well as an open and diverse place to work.
“I would like to pay tribute to my colleagues at the FCA for their support during my time as chief executive and the excellent work they do.”
Outgoing governor Mark Carney said: “I am delighted to welcome Andrew Bailey back to the Bank as its next governor.
“An extraordinary public servant, Andrew brings unparalleled experience, built over three decades of dedicated service across all policy areas of the Bank, and most recently as chief executive of the FCA.
“Andrew is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.
“Over the years, I benefited greatly from his support and wise counsel. I wish Andrew and the Bank continued success in their work to serve the people of the United Kingdom by maintaining monetary and financial stability.”
Bailey was officially named as governor by Chancellor Sajid Javid during a short press conference this morning. Javid said that Bailey was “the stand-out candidate in a competitive field”.
“He is the right person to lead the Bank as we forge a new future outside the EU and level-up opportunity across the country,” he added.