Friday, 2 November 2012
The Bank of England has published three independent reports which it commissioned in May this year. The first provides a review of the Bank's provision of emergency liquidity assistance in 2008-09: see here (pdf). The second considers the Bank's framework for providing liquidity to the banking system: see here (pdf). The third considers the forecasting capability of the Bank's Monetary Policy Committee: see here (pdf). The Bank's initial response to the reviews is available here. Governance matters are considered in the second report which notes, amongst other things, concerns with what is described as "informal governance" and "some tendency for [less senior staff] to filter recommendations in such a way as to maximise the likelihood that senior staff will find recommendations palatable" (paras. 389 to 394).