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19 June 2008

Bank of England

Her Majesty The Queen has been pleased to approve, under the Bank of England Act 1998, the appointment of Charles Bean as a Deputy Governor of the Bank of England for Monetary Stability, for a period of five years starting on 1 July 2008. Alongside this the Chancellor has announced that, in future, the Government will advertise vacancies for the Governor and Deputy Governors of the Bank of England and also for external members of the MPC, consistent with the principles of open competition.

Having consulted with the Governor and Sir John Gieve, the Chancellor has today also set out proposals to enhance the role of the Bank of England in preserving financial stability. These proposals will be included in the Banking Reform bill, to be introduced later this year.

The Chancellor's proposals focus on:

The new legislation will change the role of the Bank and, within that, the Deputy Governor for financial stability from Spring 2009.

Taking this forward will require a long-term commitment. Sir John Gieve has indicated that he would not wish to serve a new 5-year term at the Bank and has decided therefore to step down once the legislation comes into force. The Governor and Chancellor have asked Sir John to continue in the job of leading this reform process until then, at which point the position will be advertised under the new process.

Further details are set out in the Chancellor´s letter to the Treasury Select Committee

The Chancellor said:

"I am delighted to announce the appointment of Charlie Bean as Deputy Governor for Monetary Stability at the Bank of England. He is a world-class economist with a great depth of experience in both academia and policy making environments. Appointing an economist of Charlie's calibre is particularly important amidst the significant global economic challenges the UK economy is presently facing.

I would also like to take this opportunity to thank Rachel Lomax for the contribution she has made to the public sector throughout her distinguished career, including as Permanent Secretary to a number of Government departments and as Deputy Governor.

The wider reforms that I am announcing today will ensure that the Bank of England will in future have a much enhanced role in the preservation of financial stability. Sir John Gieve has made a huge contribution to public service over many years both in the civil service and at the Bank. I am extremely grateful to him for leading the Bank's work to develop these proposals for reform and for all his work in the demanding circumstances of the last year."

Mervyn King said:

"I am delighted that the Treasury has asked Charlie Bean to take on this vital role overseeing our monetary policy work. I am extremely grateful to Rachel Lomax for her contribution to the MPC, her tireless devotion to the work of the Bank and her personal support and wise counsel over the past five years. I am also very grateful to John Gieve for his hard work and loyalty. In particular since the events of last summer, John has played a major role in delivering the new framework, and I am pleased he is staying until the Bill is law. I wish them both well in future."

Charlie Bean commented:

"As the Deputy Governor responsible for overseeing the Bank's monetary policy work, I am committed to ensuring that the MPC is properly equipped to steer the economy through the challenging times ahead."

The Bank of England is announcing Charles Bean's successor as Executive Director and Chief Economist at the Bank of England in parallel to this announcement.

Notes for editors

1. Charlie Richard Bean is currently Executive Director and Chief Economist at the Bank of England, having been appointed to this position on 1 October 2000. In addition to his membership of the Monetary Policy Committee, Charlie is responsible for the Monetary Analysis & Statistics Divisions of the Bank.

2. After a spell in HM Treasury (1975-79 & 1981-82), Charlie joined the London School of Economics as a lecturer in 1982, becoming Professor of Economics in 1990 and Head of Department in 1999. He was visiting Professor at Stanford University in 1990. He has published widely, in both professional journals and more popular media, on European unemployment, on European Monetary Union, and on macroeconomics generally. He has served on the boards of several academic journals, and was Managing Editor of the Review of Economic Studies (1986-90). He has also served in a variety of public policy roles, including: as consultant to HM Treasury; as special adviser to both the Treasury Committee of the House of Commons and to the Economic and Monetary Affairs Committee of the European Parliament; and as special adviser to the House of Lords enquiry into the European Central Bank. He studied at Emmanuel College, Cambridge. (B.A., First Class Honours in Economics and Mathematics, 1975. M.A., 1979.) Massachusetts Institute of Technology (PhD, 1981. Harkness Fellow, 1979-80). Charlie was born on 16 September, 1953 and lives in Chiswick, West London. His outside interests include cricket and opera.

3. He does not currently hold any ministerial public appointments and is not engaged in any political activity.

4. The appointment of Charlie Bean was made by the Queen on the advice of the Prime Minister and Chancellor, under the terms of the Bank of England Act 1998. The appointment is for a five year term. The appointment carries with it membership of the Monetary Policy Committee.

5. The Bank of England is the central bank of the UK. It is governed by a board of directors known as the Court of Directors, which oversees the operations of the Bank, except its monetary policy decision-making, which is the responsibility of the separately appointed Monetary Policy Committee (MPC). Further details, including current Court members, can be found on the Bank of England website ( Authorities published a consultation document in January 2008: Financial stability and depositor protection:strengthening the framework which set out detailed proposals for banking reform.

6. The Financial Stability Committee will be a committee of Court, chaired by the Governor, and consisting of both executive and non-executive members of Court.

7. Sir John Gieve was appointed Deputy Governor in January 2006. He is a member of the Monetary Policy Committee and of the Board of the FSA. Rachel Lomax was appointed Deputy Governor on 1 July 2003 and has also been a member of the MPC.

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