2The re-appointment of Professor Anil Kashyap
Background on Professor Anil Kashyap
4.Alongside his membership of the Financial Policy Committee since August 2016, Professor Kashyap has been a Professor of Economics and Finance at the University of Chicago Booth School of Business and worked as a consultant for the Federal Reserve Bank of Chicago and as a Research Associate for the National Bureau of Economic Research (NBER). Prior to joining the Chicago Booth faculty in 1991, Professor Kashyap spent three years as an economist for the Board of Governors for the Federal Reserve System.
Oral evidence
5.In the oral evidence, the Committee questioned Professor Kashyap about his prior experience and his continued suitability for the post. Topics covered during the session included:
- The potential of the Woodford episode to undermine confidence in the market
- Illiquidity, investment funds and the financial stability risks
- The role of the FPC in generating trust in the financial sector
- Integration between the regulators and the policy committees
- The potential risks of disruptive technology and open banking to financial stability
- The FPC’s secondary objective
- The replacement of LIBOR
- The remaining risks of a “No Deal” Brexit
- Post-Brexit risks around financial regulation
- Cyber and operational risks and the likelihood of large-scale cyber attacks
- Cyber expertise in financial institutions
- Setting the counter cyclical capital buffer
- Consensus and accountability within the FPC
- The risks of leveraged loans to financial stability
- Weaknesses in the US financial regulatory environment and potential implications for the UK
- Financial stability risks of a trade war
- “Flightiness” of financial inflows into the UK
- Professor Kashyap’s academic work
- Diversity of experience within the FPC
- Furthering modelling of financial stability
- Support for the FPC
Conclusion
6.The Committee is satisfied that Professor Kashyap has the professional competence and personal independence to be re-appointed as an external member of the Financial Policy Committee. We wish him every success in his continuing role.
Published: 19 June 2019