LONDON Oct 22 The Bank of England has hired
external consultants to review its resources and priorities,
pressing on with a modernisation drive under recently appointed
governor Mark Carney.
The 319-year-old central bank said on Tuesday it had hired
McKinsey to advise on a strategic review and Deloitte to advise
on potential cost savings. Both reviews are expected to be
concluded next year.
The 48-year-old Canadian became the first foreigner to head
Britain's central bank earlier this year, succeeding Mervyn King
who had been at the bank for 20 years.
Unlike King, whose background was in academia, Carney spent
more than a decade at investment bank Goldman Sachs before
joining the Bank of Canada as deputy governor in 2003. He was
made governor of the Bank of Canada in 2008, becoming the
youngest central bank governor among the G8 and G20 group of
Carney has made no secret of his desire to reform the Bank
of England, an institution steeped in tradition where visitors
are greeted by doormen in top hats and pink tailcoats.
The bank was given sweeping regulatory powers following an
overhaul of Britain's supervisory structure in the wake of the
financial crisis, but its transformation has not been easy.
The cost of integrating parts of the now defunct Financial
Services Authority into the bank earlier this year was above
budget and there have been issues reconciling salaries between
former FSA staff and those who were already at the central bank.
"The results of this review will guide our strategic
investment decisions, working methods, and allocation of time
and resources across our capabilities," said a BoE spokesman.
The value-for-money review will focus on the efficiency of
the bank's support division, potentially streamlining operations
such as information technology and human resources.
(Reporting by Christina Fincher; Editing by John Stonestreet)