Randall Kroszner appointed to the Financial Policy Committee
Randall Kroszner has been appointed as an external member of the Financial Policy Committee, the Chancellor of the Exchequer, Jeremy Hunt, has announced today (21st December).
The Chancellor of the Exchequer, Jeremy Hunt, has today (21st December) announced the appointment of Randall Kroszner as an external member of the Financial Policy Committee (FPC).
Dr Kroszner is Professor of Economics at the University of Chicago Booth School of Business. He previously served as a Governor of the US Federal Reserve System from 2006 until 2009. Dr Kroszner has expertise on financial stability and regulatory policy issues with experience in both the public sector and academia. His appointment fills the external position previously held by Anil Kashyap, who stepped down from the Committee at the end of September 2022. He will serve a three-year term, which will begin in February 2023.
The Chancellor of the Exchequer Jeremy Hunt said:
“The Financial Policy Committee is key to protecting and strengthening the UK’s financial stability. I want to thank Anil Kashyap for his contribution to the work of the Committee over the past six years, especially during the pandemic.
“I am pleased to announce the appointment of Randall Kroszner. His leading academic voice in macroprudential policy, built over a decade at the University of Chicago, and his experience at the Federal Reserve during the global financial crisis will be of real value to the committee.”
The Governor of the Bank of England Andrew Bailey said:
“I am delighted to welcome Randy to the FPC as an external member. His significant international policy experience and extensive research on the financial sector will be an asset to the FPC. I look forward to working with him on the Committee and benefiting from the wealth of expertise he will bring to our discussions.”
Further information
Randall Kroszner is the Norman R. Bobins Professor of Economics and previous Deputy Dean of the University of Chicago Booth School of Business, where he has had a distinguished 30-year career. Prior to this appointment Dr Kroszner served as a Governor of the Federal Reserve System, where he chaired the Committee on the Supervision and Regulation of Banking Institutions and took a lead role in developing responses to the global financial crisis to improve consumer protection and broader financial regulation. He has made important contributions to international financial stability policy over his career, representing the Federal Reserve Board at the Financial Stability Board and the Basel Committee on Banking Supervision, and as a member of the President’s Council of Economic Advisers from 2001 to 2003. Dr Kroszner has published academic papers and spoken on a broad range of issues, including regularly at global academic and policy conferences and appearing on Bloomberg, CNBC and CNN. Since 2018, Dr Kroszner has served as Chairman of the US Treasury Office of Financial Research advisory committee.
About the appointment process
Randall has been appointed following an open recruitment process. As part of this process, HM Treasury recruited an executive search agency. A panel comprising of Gwyneth Nurse (non-voting member of the FPC and Director General of Financial Services, HM Treasury), Elisabeth Stheeman (external member of the FPC) and Martin Taylor (external member of the FPC from 2013 to 2020) interviewed a number of candidates and made recommendations to the Chancellor, which informed his decision.
There were 41 applications, of which seven candidates were shortlisted for interview. The gender breakdown for this appointment is below:
| Application stage | Shortlisted for interview | |
|---|---|---|
| FPC External Member | 10 women, 28 men, 3 undisclosed | 2 women, 5 men |
About the Financial Policy Committee
- the FPC is the UK’s macroprudential regulator: its objective is to protect and enhance the stability of the UK’s financial system by identifying, monitoring and addressing systemic risks
- the FPC has thirteen members. Six of them are Bank of England staff including the Governor and four Deputy Governors
- there are also five external members who are selected from outside the Bank for their experience and expertise in financial services
- the Committee also includes the Chief Executive of the Financial Conduct Authority and one non-voting member from HM Treasury
- external members sit on a part-time basis and are employed on the basis of having knowledge or experience which is likely to be relevant to the Committee’s functions. The Bank have robust procedures in place to monitor and manage any actual or potential conflicts of interest to ensure the independence, integrity and impartiality of the Committee, and avoid any perception that a Committee member may obtain an unfair advantage through their association with the Committee.