MPs recommend Bank of England reform

The Commons Treasury Select Committee wants Parliament to be able to veto the appointment of Bank of England governors, for them to serve single eight-year terms, and for the governance of the Bank to be radically modernised.

The ‘Court’ – the board of the Bank – should have 12 members down from 16, be renamed the ‘supervisory board’, and publish minutes of meetings. The MPs want the board to have a broader mix of members, with financial backgrounds.

Andrew Tyrie, chairman of the Treasury committee, said: “The Bank of England will play an even more vital role in preventing future crises, yet aspects of its governance appear antiquated.

"Scrutiny of the Bank should reflect the needs of 21st-century democracy. That means clear lines of accountability and more information made available to parliament. It should also be crystal clear who is in charge at a time of financial crisis. On all these issues the Government's draft legislation would benefit from improvement.”

A Treasury spokesperson said: “The Government welcomes the TSC’s report and will study the recommendations carefully in consultation with the Bank of England.”

The Bank of England acknowledged that change was “necessary” and said it would study the recommendations carefully before responding.