Sarah Breeden has been appointed as the new Deputy Governor for Financial Stability at the Bank of England (BoE), according to an announcement by Britain’s finance ministry. Breeden will succeed Jon Cunliffe, whose term is set to end on October 31.
As one of the four deputy governors at the BoE, Breeden will serve on the Monetary Policy Committee, the Financial Policy Committee, and the Prudential Regulation Committee. These committees are responsible for regulating the financial sector and setting key interest rates.
Bank of England Governor Andrew Bailey expressed confidence in Breeden’s abilities, stating that she brings a wealth of financial and economic policy knowledge to the role, both domestically and internationally.
Breeden’s tenure will begin on November 1. She already serves on the Financial Policy Committee and holds the position of executive director for financial stability strategy and risk at the central bank. Her career has primarily focused on financial stability and markets, including overseeing the winding up of Northern Rock during the 2007-08 financial crisis.
In addition to her responsibilities related to financial stability, Breeden will also tackle crucial issues such as the central bank’s work on a digital currency and conducting stress tests on the stability of the British banking and financial sector.
Jon Cunliffe, the current Deputy Governor for Financial Stability, joined the Bank of England in November 2013. After two consecutive five-year terms, he will be stepping down from his role. Cunliffe, who previously served as a finance ministry official and Britain’s ambassador to the European Union, has made significant contributions during his tenure at the central bank.
The appointment of Sarah Breeden comes at a time when the Bank of England’s primary challenge is addressing the issue of inflation and aiming to achieve its 2% target. However, there are multiple other concerns that Breeden will need to address, including the potential development of a central bank digital currency and the ongoing stress tests on the banking and financial sector.
Breeden’s extensive experience and knowledge in financial stability and her involvement in key areas, such as supervising foreign banks during the Brexit referendum and the central bank’s work on addressing climate change risks, makes her well-suited to take on these responsibilities.
Overall, Sarah Breeden’s appointment as Deputy Governor for Financial Stability at the Bank of England reinforces the institution’s commitment to ensuring the stability and resilience of the financial sector in the face of various challenges and uncertainties.
