Bankers were advised by Mark Carney, the governor of Bank of England, that they should use their position to promote prosperity, investment, and innovation. These are good for the wider society. He added that they should not take up a job in banking only for the premium pay package and the other monetary windfalls bankers normally enjoy. The Bank of England Governor mentioned the above during his speech in London's Regent's University.
Breaking traditional banking roles
Carney said the modern BoE of today has delegated much of its traditional functions. This was done consciously to make sure the hierarchy breaks. He highlighted the requirement of social capital when it came to the finance. He pointed out that to maintain this social capital, finance must be viewed as a vocation. It should be thought of as an activity with premium ethical standards. The latter, in turn, leads to certain responsibilities.
Carney touched upon a variety of topics in his speech. He shared his thoughts and opinions on leadership. He also admitted to the many mistakes the BoE made in its history. Critics quickly pointed out that the mistakes admitted were all made when he was not with the central bank. The governor did not forget to mention the many improvements he put in place at the BoE after he joined this influential organization. The speech conveniently did not touch any subject on monetary policy. It also did not mention the oversight enjoyed by BoE on the subject of British financial stability. It was recognized by the governor that his speech will be dissected by management professionals who will invariably recognize the dissonance between what he preached and what he actually practiced in his professional life. It is to be noted that Carney's management style is known to be a brusque one. He has a tendency to shout at people working underneath his command.
According to Carney, the most important management task right now is to locate the right people and develop them. He pointed out that even 10 years back, the banks used to take economists who had passed out from a select list of premium universities. The present banking crop, in contrast, has been hired from post-secondary institutions. About 50 percent of bankers nowadays have studied humanities, sciences, law, and business. The governor of BoE further said that 50 percent of the new recruits are women. About 25 percent are sourced from ethnic minorities.