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134/08

10 December 2008

Bank of England - Deputy Governor

Her Majesty The Queen has been pleased to approve, under the Bank of England Act 1998, the appointment of Paul Tucker to succeed Sir John Gieve as the Deputy Governor of the Bank of England for Financial Stability. This appointment is for a period of five years starting in March 2009.

The Chancellor said:

"I am delighted to announce Paul Tucker’s appointment as Deputy Governor for Financial Stability. Paul possesses first-rate market knowledge and extensive central banking experience, including as a longstanding member of the Monetary Policy Committee. Paul will be a key member of the team leading the Bank’s work during the current financial and economic challenges we face.

“I am extremely grateful to Sir John Gieve for his contribution to the Bank of England, including leading on work to develop the reforms to enhance its role in preserving financial stability. The important role he has played within the Bank since 2006 adds to the huge contribution he has made to public service over many years.”

Governor of the Bank of England, Mervyn King, said:

“I’m delighted Paul has been appointed as the Bank’s Deputy Governor for Financial Stability. His experience across the Bank makes him the ideal person to help steer the financial system through this challenging period”.

“I would like to thank Sir John for his significant contribution to the Bank and in particular for his work in shaping the Banking Reform Bill and for the international discussion of regulation in the Financial Stability Forum and elsewhere”.

Paul Tucker said:

“I’m privileged to accept the role of Deputy Governor and look forward to working with the Governor and the Bank team, the Tripartite Authorities, market counterparties and overseas central bank colleagues to address the financial stability challenges ahead”.  
The Chancellor announced in June that in future the Government would advertise vacancies for the Governor and Deputy Governors of the Bank of England and for external members of the Monetary Policy Committee. This appointment is the to first to follow this new process. The Bank of England will announce arrangements regarding the recruitment of Paul Tucker’s successor as Executive Director Markets in due course.

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Notes for Editors

  1. Paul Tucker was appointed  Executive Director Markets at the Bank of England in June 2002 and has been a member of the Monetary Policy Committee since then. 
  2. Paul joined the Bank of England in 1980. From 1980-1989 he worked as a banking supervisor; a corporate financier at a merchant bank; and on projects to reform the Hong Kong securities markets and regulatory system following the 1987 crash, and then the UK's wholesale payments system, leading to the introduction of real-time gross settlement. He was Principal Private Secretary to Bank of England Governor Leigh-Pemberton for 3½ years until 1993, from where he moved to the domestic market operations area. He became Head of Gilt-Edged & Money Markets Division in the Bank in mid-1994, during the period of reforms in the gilt and sterling money markets. He was Head of Monetary Assessment and Strategy Division in the Bank from 1997-1998. From January 1999, Paul was Deputy Director, Financial Stability, and was closely involved with the Bank's Financial Stability Review; and a member of the Bank's Management Committee. From May 1997 until his current appointment, he was on the Secretariat of the Monetary Policy Committee, preparing the published minutes.
  3. The Deputy Governor for Financial Stability is a member of the Court of the Bank of England and the Monetary Policy Committee. He also sits as a member of the Board of the Financial Services Authority and is the Bank’s representative in the Tripartite Standing Committee Deputies. He will play a central part in the strengthened financial stability role of the Bank of England.
  4. As set out in the Banking Bill currently before Parliament, the Government has brought forward a number of measures to strengthen the financial stability role of the Bank of England, including by:
    • providing the Bank of England with a statutory responsibility for contributing to the maintenance of financial stability;
    • improving the policy instruments available to the Bank of England in support of financial stability, including through responsibility for the special resolution regime (SRR) for failing banks;
    • implementing new corporate governance structures within the Bank of England, including legislating for the creation of a Financial Stability Committee; and
    • modernising the Bank of England’s Court, to reflect its enhanced role in financial stability.

    The text of the Banking Bill can be found on the Parliament website www.parliament.uk.

  5. This appointment is for a period of five years and is open to reappointment. Deputy Governor’s must work exclusively for the Bank. Remuneration for this post is determined by the Court of the Bank of England on the advice of a remuneration committee consisting solely on non-executive directors.
  6. The Chancellor announced in June 2008 in a letter to the Treasury Select Committee that in future the Government would advertise vacancies for the Governor and Deputy Governors of the Bank of England and also for external members of the Monetary Policy Committee, consistent with the principles of open competition. This appointment is the to first to follow this new process. 
  7. This vacancy was publicly advertised consistent with the principles of open competition. All appointments are made on merit and political activity plays no part in the selection process. Paul Tucker has confirmed that he holds no ministerial public appointments and has no political activities to declare. 
  8. The timing of this announcement allows for the Treasury Select Committee to hold a pre-commencement hearing for this appointment should it wish to do so.
  9. In June 2008 Sir John Gieve confirmed his intention to step down as Deputy Governor once the reforms within the Banking Bill were in place. He was appointed Deputy Governor for Financial Stability in January 2006. In addition to his membership of the Monetary Policy Committee, he has specific responsibility for the Bank's Financial Stability work and is a member of the Board of the Financial Services Authority. Before joining the Bank he was the Permanent Secretary of the Home Office from 2001 to the end of 2005. Prior to this he spent twenty years at the Treasury, where he worked on banking and City regulation, energy, public services and the Budget and was Private Secretary to three Chancellors.

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