Sir Mervyn King signs off central bank's accounts for final time

5th June 2013 | News

The Bank of England’s outgoing Governor, Sir Mervyn King, signed off the Bank’s accounts for the very last time this week, as he prepares to relinquish the hot-seat to successor, Bank of Canada Governor, Mark Carney.
 
In his foreword to the Bank of England’s latest annual report, King indicated there were green shoots of recovery for the economy, but was quick to warn that a full recovery would require a "restoration" of confidence in the banking system.
 
"For that, our banks must be adequately capitalised. That is why the Bank’s Financial Policy Committee (FPC) has recommended that Britain’s banks take action to deal with a significant, but manageable, shortfall in their overall capital positions," he added.
 
King has often been critical of the banking industry, pointing to the capital levels of the main lenders as one of the integral reasons behind the country’s sluggish recovery post-recession.
 
However, last month regulators confirmed that both Lloyds Banking Group and Royal Bank of Scotland were making good strides to improve their capital levels in order to satisfy their requirements.
 
Elsewhere in his foreword, King warmly welcomed his successor, current Bank of Canada Governor, Mark Carney, describing him as "safe hands" to take the bank forward in the coming years.
 
Carney is due to take over as Governor at the beginning of July having left his current post this week. He takes over at the helm of the Bank of England with a heightened level of responsibility, after the Bank took charge of regulating Britain’s banks back in April.
 
King presides over his final policy meeting - a two-day Monetary Policy Committee (MPC) - today, with analysts predicting further calls for cash stimulus to underpin Britain’s vulnerable economic recovery.


Image: The CBI