Rachel Reeves has begun the search for Britain’s next top bank regulator, urging senior financiers to throw their hat in the ring. Sky News has reported that the chancellor has officially launched the quest for the next chief executive of the Prudential Regulation Authority (PRA), housed within the Bank of England.
In a recruitment advertisement posted on Friday, the Treasury highlighted «senior executive experience in a major bank, insurer, or other financial institution» as one of two «desirable criteria» for the future appointee. The government is looking for a chief executive to serve a five-year term, aligning with the tenure of Financial Conduct Authority’s (FCA) chief, Nikhil Rathi. Sam Woods, set to step down in June next year, has completed two five-year terms.
The incoming chief executive is slated to earn £314,000 annually, mirroring Mr. Woods’ compensation package. Last month, it was disclosed by Sky News that Ms. Reeves is eager to recruit an external heavyweight to lead the PRA, with Katharine Braddick, a former Treasury official who is now a senior executive at Barclays, among the anticipated candidates.
The language used in the job specification may diminish the likelihood of an internal candidate like David Bailey, the Bank of England’s executive director for prudential policy, being selected. Ms. Reeves’s preference for an external candidate with industry experience comes amidst a broader push for economic watchdogs in Britain to reduce bureaucracy and pivot towards growth-oriented strategies.
A Treasury source indicated that the chancellor views the PRA chief executive recruitment process as a crucial element of the government’s efforts to kickstart economic growth. Next month, she is scheduled to present the Budget, a fiscal event that is likely to determine the government’s economic credibility.
Prospective replacements for Mr. Woods are anticipated to undergo interviews in the new year, with an appointment expected by springtime. While Mr. Woods has been seen as a potential successor to Andrew Bailey when the Bank of England governor’s term expires in 2028, it remains uncertain if he desires the position. As the CEO of the PRA, Mr. Woods also serves as a deputy governor of the Bank of England, a member of the Bank’s Court of Directors, and a director of the FCA.
The chancellor has previously demonstrated a willingness to recruit external candidates to senior positions at the Treasury, appointing Jim O’Neil, a former Bank of America investment banking executive, as the second permanent secretary to the Treasury earlier this year. Mr. O’Neil had also led UK Financial Investments, the agency established to oversee taxpayers’ interests in Britain’s rescued banks.
The Treasury has chosen not to provide any additional comments.
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