BoE faces TSC accountability probe

The Treasury Select Committee (TSC) has launched an inquiry into the Bank of England's (BoE) accountability before its powers are extended in the government's regulatory shake-up.

The government's plans will extend the responsibilities of the Bank to include monitoring financial stability and taking action against threats to that stability.

MPs want the BoE to explain what kind of decisions should made by each body when the Prudential Regulation Authority (PRA), becomes a subsidiary of the Bank in 2012.

The TSC also wants to know to whom the Bank should be accountable, and if different accountability mechanisms are needed for its different functions.

Other parts of the inquiry will look at the relationship between the Bank and Court of the Bank of England, an advisory body made up City figures who provide non-monetary policy advice to the central bank.

The TSC wants to scrutinise the arrangements for members' appointment and dismissal to the Court of the Bank.

It also wants to know what resources the Bank will need to carry out its functions.

Written evidence should be submitted by 12 noon on Thursday 31 March 2011 in Word or rich text format, not PDF, by e-mail here. 

The body of the e-mail must include a contact name, telephone number and postal address, and should be no longer than 3,000 words.

FSA chief executive Hector Sants and director of policy conduct Sheila Nicholl are primed for a final face-off with the TSC on the RDR next week Wednesday.