Financial Stability Committee named

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The Independent Online

The chairman of Tate & Lyle and the chief executive of the Pru are among the newly appointed members of the Bank of England's Financial Stability Committee, a high level committee set up to monitor financial stability.

Sir David Lees from Tate & Lyle and Prudential's Mark Tucker are joined by Roger Carr, the chairman of British Gas-owner Centrica and Cadbury Schweppes, who has been appointed on an interim basis, and Harrison Young, a non-executive director of the Commonwealth Bank of Australia.

Apart from Mr Tucker, who was group finance director of HBOS until 2005, and Mr Young, who was chairman of Morgan Stanley Australia until 2007, the appointees are drawn from outside the financial sector - a surprise given the goals of the committee, which was conceived in the aftermath of the Northern Rock debacle and under the Banking Act is supposed to market recommendations in relation to the Bank's financial stability objective, among other financial sector-related functions.

Colin Ellis of Daiwa Securities SMBC welcomed Mr Tucker's and Mr Young's appointment, but of the others asked, "Can Centrica and Cadbury's fix the credit crunch?"

Mr Ellis added that he was surprised by the exclusion of the Bank's executive director for financial stability, Andrew Haldane, saying that "his recent speeches have been very good, showing a willingness to think outside the box and an ability to convey complex ideas in a simple way."

The committee is part of the Court of the Bank of England, and includes the Governor and the two deputy governors. The members are drawn from the ranks of non-executive directors in the Court, of whom there are eight at present. Mr Carr has joined the committee pending the appointment of a ninth non-executive director, who will be brought on with a view to joining the committee.