LONDON, March 18 (Xinhua) -- Bank of England (BOE) governor Mark Carney announced a major shake-up of the central bank on Tuesday to bring closer together its two main functions, providing financial and monetary stability.
BOE was operating in the wake of the financial crisis and the subsequent recovery in a "macro and macroprudential environment that has great risk, things have to be done and coordinated to match those risks," the governor addressed.
He expected to improve cooperation and coordination between four core functions of the Bank, including monetary policy, markets, macro-prudential policy and micro-prudential regulation.
He urged policymakers to re-build an open, integrated and resilient global financial system. "As the leading global financial center, the UK will be central to this," he said.
Carney called for reforms in the wake of the Libor and foreign exchange scandals, "Changes must be made to both the hard and soft infrastructure of core markets to ensure they are fair, effective and efficient."
BOE also acted to achieve reorganization by appointing former IMF senior banker Minouche Shafik as deputy governor for Markets and Banking, and Ben Broadbent as deputy governor for monetary policy. Both will sit on the bank-rate-setting Monetary Policy Committee (MPC).
Carney said BOE would work to contribute to "the G20's ambitious program of financial reform including building resilient financial institutions, ending too-big-to-fail, making derivative markets safer and transforming shadow banking to market-based finance."
"Over time, the financial sector will be better placed to anticipate our responses and as with monetary policy, increased transparency will make us not just accountable, but also more effective," he said.
Carney unveiled his new blueprint for the BOE in the annual Mais Lecture given at the Cass Business School, City University London.