050_Global13_Arena_V5

Global 13

Arena Insight Can Canada’s star shine in London? With an impressive résumé and a trail of successes in his wake, the fi rst non-British Governor of the Bank of England, the Canadian Mark Carney, will be under incredible pressure to turn around the UK’s banking system when he takes up his post in July. But as a fi rm believer in the power of consumer spending and a strong advocate for tougher regulation, Carney may be just the man to push through much needed changes, writesChris Cobb B pointment back in November. But knowing the fi nancial no longer an option – at least not for him.tive fi nancial community that very much includes the average Joeconsumer and operating in mysterious ways behind closed doors isank of England Governor-in-waiting, Mark Carney, hasbeen choosing his words carefully since his surprise ap- world is suddenly hanging on to his every word, he chose his fi rst Banks, he has said many times, are not in business only for them- speech after the announcement to drop a few hints – not by saying selves but for the health of the economy and the fi nancial well- what he intends do at Threadneedle Street in London but emphasis- being of all. ing what he has done on Wellington Street in Ottawa, home of his Some fi nancial analysts have predicted that the Canadian and his current employer, the Bank of Canada. championing of long-term low interest rates will lead to a clash with “Much is made in Canada that we didn’t have bank failures and the Bank of England establishment, but Carney’s reasoning is simple: we didn’t have other issues,” he told a 13 December meeting of keep consumers spending and the economy will keep ticking over. the Chartered Financial Analysts Society in Toronto. “In part, we But there’s a downside that has led him to publicly warn Canadi- didn’t have those because we made tough decisions in a timely ans about the amount of household debt they are carrying. Carney fashion. The fi rst thing is transparency. You have to level with peo- has no magic wand to waft from the helm of the Bank of England ple on the scale of problems. It does no good to try to spin your but among other things, he has confi dence, an engaging personality way out of a crisis.” and a belief that banks need to be regulated to protect themselves, If translation from Canada to England and Europe is needed, and the world’s economies, from their worst instincts. Carney’s message is this: central banks are players in a coopera- So while the 47-year-old former Goldman Sachs wunderkind 50 lwww.global-briefing.org first quarter 2013global


Global 13
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