Top Barclays executive to take the helm at UK banking watchdog
A senior Barclays executive and former Treasury official has been appointed as the chief supervisor for British banks and insurers, reinforcing the government’s drive to ease regulations brought in after the 2008 financial crisis.
Katharine Braddick, head of strategic policy at Barclays and senior adviser to the chief executive, will succeed Sam Woods as the next Deputy Governor for Prudential Regulation at the Bank of England and as the chief executive of the Prudential Regulation Authority (PRA).
Braddick will step into the role upon Wood’s term expiring at the end of June, the Treasury confirmed.
The appointment of an executive at one of the UK’s biggest banks as the sector’s chief supervisor is expected to be welcomed by City officials and workers, who have been calling on Rachel Reeves for reforms to regulation in order to boost economic growth.
The Treasury confirmed the selection underlines the government’s expectations that UK regulators are “robust on resilience and ambitious on growth”.
The Chancellor said: “Katharine Braddick is an accomplished pro-business leader with the experience to keep our financial system safe while backing the investment and lending that drives growth.
“She understands the City and regulation, and will help ensure the UK remains one of the best places in the world to do business.”
Raise concerns
But, the appointment could raise concerns over conflicts of interest as well as the risk that Braddick could bring in a wave of deregulation, potentially leaving the country more exposed to a potential financial crisis.
Woods, who served two-five year terms at the helm of the PRA, was influential in shaping most of the post-crisis regulatory framework for UK banks and insurers, with Braddick set to inherit decision on whether to ease capital requirements for lenders.
Braddick joined Barclays four years ago, following two decades worth of service in the public sector, including as director of financial services at the Treasury as well as a role at the PRA.
Braddick was also head of banking at the Financial Services Authority for ten years, including during the 2008 crisis, after which the watchdog was broken up.
Leading the PRA
As Deputy Governor, Braddick will lead the PRA’s work to supervise and regulate banks, building societies, insurers and major investment firms.
She will also sit on the Prudential Regulation Committee, the Financial Policy Committee, and the Court of the Bank of England, as part of the executive team delivering the Bank’s statutory objectives.
Andrew Bailey, governor of the Bank of England, said: “I am confident that she will lead the PRA with great ambition and skill, maintaining strong regulatory foundations to underpin a growing financial sector and a thriving economy. “