Bank of England - Financial Policy Committee External Member

HM Treasury
United Kingdom
GBP 40,000 - 60,000
Job description
Bank of England - Financial Policy Committee
Sponsor department: HM Treasury
Location: Various
Sectors: Finance and Audit
Skills: Business, Regulation
Number of vacancies: 1
Time commitment: 92 day(s) per annum
Remuneration: £101700
Length of term: 3 Years
Application deadline: 10am on 13 January 2025

About the appointment

Thank you for your interest in becoming an external member of the Bank of England’s Financial Policy Committee (FPC).

The FPC is the Bank’s macroprudential authority and plays a central role in the Bank’s work on financial stability. It identifies and monitors systemic risks that threaten the resilience of the UK financial system as a whole, and takes policy actions to remove or reduce those risks. An example of such a risk is unsustainable levels of debt and credit growth. Subject to meeting its primary focus on financial stability, the FPC also has a secondary objective to support the economic policy of the government.

The coming period will see the FPC – along with the Bank’s other policy committees – continue to deal with a wide range of issues.

Alongside its assessment of the risk environment – including monitoring the impact of the tightening of financial conditions on households and businesses – the FPC has prioritised four initiatives over the next three years: further improving risk identification in, and the functioning of, market-based finance; continuing to identify, assess and respond to structural changes and new risks in the financial system and the economy; responding to lessons learned for macroprudential policy from the FPC’s experience in periods of stress; and continuing to improve macroprudential oversight of operational resilience, in light of its growing importance to financial stability.

This important programme of work makes it all the more important that the FPC benefits from the judgement and expertise of its external members. The knowledge and analytical rigour that these members bring to bear on the committee’s work, along with the independent challenge they provide, ensure that the FPC’s decision-making is robust and effective.

If you have the skills and experience that the FPC requires and are motivated by actively contributing to maintaining the stability of the UK financial system, then I encourage you to pursue this opportunity and wish you every success in your application.

Andrew Bailey - Governor of the Bank of England and Chair of the Financial Policy Committee

Appointment description

This is a high-profile and influential role, selected personally by the Chancellor of the Exchequer so that the Financial Policy Committee benefits from wider expertise beyond the Bank’s own, and to provide constructive challenge during deliberations. The Chancellor seeks to ensure that the committee showcases an appropriate balance of different backgrounds and is keen to increase the committee’s diversity. External members are independent – they do not represent or lobby for individual groups, interests, or sectors.

The role entails a part-time commitment of an average 20 to 30 days a quarter, though actual experience can vary considerably. Members are appointed for a three-year term. There is the possibility of reappointment at the end of the term; external members can serve a maximum of two terms. There is no automatic presumption of reappointment.

On taking up their post, external members receive support from a dedicated unit of officials within the Bank of England. They handle both logistical and policy issues, such as supporting members to prepare speeches.

Organisation description

The Bank of England

The Bank of England is the central bank of the United Kingdom. It exists to protect monetary and financial stability. The Bank is a diverse organisation, proud of its inclusive culture. It focuses on inclusion to enhance diversity of thought, looking at financial stability risks through the widest range of perspectives.

The Financial Policy Committee

The Financial Policy Committee was established by the Financial Services Act 2012. The committee supports the Bank’s financial stability objective by enhancing the resilience of the UK financial system. It identifies, monitors, and takes action to reduce systemic risks. The committee also has a secondary objective to support the government’s economic policy.

The Financial Policy Committee has wide-ranging powers to make recommendations, including to HM Treasury. It can direct the Prudential Regulation Authority and the Financial Conduct Authority to take particular actions to address systemic risks.

Meetings

The Financial Policy Committee usually holds a quarterly series of meetings in March, June, September and November with 6-8 meetings each time. Each round begins with around two weeks of briefing meetings, when staff from the Bank of England and Financial Conduct Authority brief the committee on economic developments. Members receive all the latest data and cutting-edge analysis of financial trends and regulatory matters. These conclude with policy decision meetings, when the committee makes its judgements and may exercise its formal powers.

The committee aims to set policy by consensus but will vote if a consensus cannot be reached.

Meetings normally take place at the Bank’s head office in Threadneedle Street in the City of London. Meetings are usually hybrid, with most members attending in person at the Bank’s head office and other members joining remotely.

Public communications

By law, the Financial Policy Committee must explain its thinking and decisions publicly in writing. A record of FPC meetings is normally published two weeks after policy-setting meetings. The record gives a full account of the policy discussion, including any differences of view and votes.

The committee explains its actions regularly to parliamentary committees, particularly the House of Commons Treasury Committee. Committee members are also expected to speak to audiences throughout the country to explain the committee’s views and decisions.

In addition to the records, the Financial Policy Committee publishes a Financial Stability Report twice a year. The report assesses the strengths and weaknesses of the UK financial system and explains the committee’s outlook for future financial stability. The report also summarises the committee’s actions since the previous report and assesses how those actions have contributed to the committee’s objectives.

Board composition

Executive Members

  • Andrew Bailey - Governor
  • Sir Dave Ramsden - Deputy Governor Markets and Banking
  • Sam Woods - Deputy Governor for Prudential Regulation
  • Sarah Breeden - Deputy Governor Financial Stability
  • Clare Lombardelli - Deputy Governor Monetary Policy
  • Nathanaël Benjamin - Executive Director for Financial Stability Strategy and Risk

External Members

  • Dame Colette Bowe
  • Jonathan Hall
  • Randall Kroszner
  • Liz Oakes
  • Carolyn Wilkins

Ex-Officio Members

  • Nikhil Rathi - CEO Financial Conduct Authority
  • Gwyneth Nurse - HM Treasury Non-Voting Member

For further information about the work and membership of the Financial Policy Committee please see the Bank of England website.

Person specification

Essential criteria

All criteria will be assessed at both sifting and interview stages. In the event that we receive a large number of applications, we will sift based on the lead criterion only: significant understanding of the financial sector.

Significant understanding of the financial sector. Candidates must have senior-level experience in the financial sector and must be recognised as a leader in their profession. Breadth and holistic experience are encouraged. This may include, but is not limited to, experience in the fields of retail banking, financial markets, and/or the application of emerging technology such as artificial intelligence (AI) within the financial sector.

Deep understanding of financial stability risks. Candidates must be able to critically evaluate complex information about the full breadth of the financial sector to reach policy judgements. They must understand the key financial sector developments of the moment and their implications for the stability of the UK’s financial system.

Solid understanding of economics. Candidates must be able to demonstrate that they can consider the economic factors in the committee’s deliberations. Candidates should demonstrate that they have used their economic knowledge in areas related to financial policy or macroeconomic issues.

Independence of thought. Candidates must be able to exert influence within the Bank and in wider external policy debate. They must provide robust challenge whilst working closely and constructively with fellow members.

Excellent interpersonal and communication skills. Candidates must be able to defend decisions and communicate externally with complete credibility. Candidates must make a strong contribution to the committee’s communications explaining its decision (including for example to Parliament and the public).

Undisputed integrity and standing. Candidates must maintain discretion and engender trust. They must, in good faith, abide by any constraints regarding conflicts of interest.

How to Apply

In order to apply you will need to create an account or sign in.

Once you are logged into your account, click on 'apply for this role' and follow the on-screen instructions. To apply, all candidates are required to provide:

  • a Curriculum Vitae (CV)
  • a supporting statement
  • equality information
  • information relating to any outside interests or reputational issues

You will need to balance any other activities with the need to show sufficient independence in the role that you are applying for. This may have an impact on other roles you can hold and, as such, it is important that you make clear any other commitments you have or are likely to undertake. If you believe you may have a potential conflict of interest please describe it in the form that appears as you progress your application.

We will ask you to check and confirm your personal details to ensure your application is accurate.

You will also have the opportunity to make a reasonable adjustment request or apply under the Disability Confident scheme before you submit your application.

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