Think-tank issues bank report

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A Bank of England committee must become more independent to ensure it acts as an “early warning alarm” for potential financial problems

In a report out yesterday, the Policy Exchange think-tank called for most of the bank’s committee’s members to be externally appointed and to have backgrounds in financial markets to avoid “group think”.

The Bank’s financial policy committee (FPC) monitors overall risks in the UK system with members appointed by Chancellor George Osborne.

The report also recommended that a Treasury representative leaves the FPC and that Parliament’s Treasury select committee has the power to veto any appointments to ensure its political and procedural independence.