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As a BoE lifer he has overseen all the key areas the next governor would have to deal with: monetary policy, prudential supervision, macro-prudential regulation and international markets.
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The last thing a credible central bank needs is dog's breakfast of monetary policy, macro-prudential and micro-prudential, all the while under intense lobbying from special interests who have a great deal at stake.
But Paul Sharma, FSA director of prudential policy, said it was crucial to learn the lessons from the financial crisis.
Paul Sharma, the regulator's director of prudential policy, said the agency was the first major regulator to introduce tighter liquidity rules for companies.
First, our results are consistent with the new prudential policy measures on limiting the ex-ante banks' incentives to take on excessive risk-taking.
Focusing on that later development, Woo (2003) and Watanabe (2007) found that Japanese banks significantly reduced their lending in response to a large increase in bank capital requirements resulting from the reinforcement of the prudential policy guidelines by the Japanese regulator.
Most policy decisions are prudential judgments -- compromises between two political parties, neither of which represents the kingdom of God.
Now, it is about financial stability, monetary policy and macro-prudential policy.
"The Bank of England is taking steps to ensure we can assess a range of future risks from a number of different sources to inform our micro- and macro-prudential policy decisions.
Applied to the economy as a whole, a macro-prudential policy framework aims to prevent imbalances from building up in the first place.
It is expected that the summit will achieve important outcomes regarding how to build more resilient national financial architecture, open and prudent financial systems, macro-prudential policy tools and frameworks, and inclusive finance.
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