THOUGHT

36
SPECIAL REPORT
SPECIAL REPORT
37
Banking on valuable
feedback from
Shropshire companies
Glynn Jones explains that agents help to communicate policy to a broad audience and to promote a widespread understanding
and trust of the monetary and financial stability policy framework
The Bank of England’s iconic headquarters in London, heads up regional branches forming a UK network
When the Bank of
England’s monetary
policy committee
sits down each month to set
the base rate of interest, it
carefully considers feedback
received from its network of
agents across the UK.
These agents tour the country seeking
the opinions of all sections of the local
business community, and are regular
visitors to Shropshire.
And our county’s connection doesn’t
end there, because Glynn Jones, the
Bank’s deputy agent for the West Midlands
and Oxfordshire, was born in Telford
and spent many years being raised in
Shrewsbury.
The Bank has 12 agencies which form
a national network across the UK, and
Glynn works from offices in Birmingham city
centre. So, what exactly is their agenda?
Glynn explains: “Our primary role is
to assess both economic and financial
conditions based on the views of
businesses in the region as an input to the
policy making process, both for monetary
and financial stability. The agencies
therefore form a vital link between business
and the Bank.
“The Bank’s regional branches were
first established in 1826 as a response to
the financial crisis of 1825-26, involving the
Glynn Jones, the Bank’s deputy agent for
the West Midlands and Oxfordshire, was
born in Telford and spent many years being
brought up in Shrewsbury
failure of many provincial banks. The main
reason for establishing the branch banks
was to enable the Bank to take further
control of paper note circulation, in order to
prevent another crisis.
“The Bank’s Court of Directors decided
that branch business should be conducted
by ‘persons of commercial knowledge with
local experience’.”
While the network of branches grew and
changed during the 19th century, their basic
responsibility was still to provide a banking
and banknote distribution service, and
branches continued to issue notes into the
early 20th century.
From 1930 on, however, the branches
gained a new function – a requirement
to send confidential reports on business
conditions to Threadneedle Street, the
Bank’s iconic London headquarters.
This intelligence gathering role was
further enhanced by the establishment of
the Bank’s Monetary Policy Committee in
May 1997.
Glynn says: “The network now had a key
role to play in enabling the Bank to collect
‘proper regional and sectoral information for
the purpose of monetary policy formation.’
“Since then, the agents’ role has
continued to evolve and grow to include
intelligence pertinent to the Bank’s financial
stability functions, an aspect of work which
has been given added impetus by the recent
creation of the Financial Policy Committee
and Prudential Regulation Authority.
“With around 9,000 contacts a year
across a range of sectors, the Agents
have access to a deep pool of business
intelligence.
“In Shropshire, I visit a very diverse
range of businesses, from local farmers to
major manufacturers, tourism operators to
car dealerships, logistics and not forgetting
my favourite – the food and drinks sector.
“We also hold two panel meetings in
Shrewsbury and Telford, drawing together a
range of local employers.”
This intelligence is not just analysed
and communicated internally, but is
also viewable externally, via the Agents’
Summary of Business Conditions, which
is published on the Bank’s website at the
same time as the minutes of the MPC’s
monthly meeting.
The summary includes the agents’
‘scores’ together with findings from special
surveys commissioned by the MPC and
based on interviews with contacts to
investigate a particular issue of topical
interest in more depth.
Glynn continues: “The agents are also
widely known through their representational
role, notably our presentations of the
Inflation and the Financial Stability Reports.
“In Shropshire, this involves regular
presentations to the business community,
including the Business Board, events at
Telford College of Arts and Technology, and
the Telford Business Partnership.
“This engagement is not confined to
businesses but also includes the wider
community, the third and education sectors.
Through this role, the agents help to
communicate policy to a broad audience
and to promote a widespread understanding
and trust of the monetary and financial
stability policy framework.”
As part of this engagement, Glynn
says the agencies also host regional visits
by policymakers and facilitate meetings
between them and firms around the country.
“Through these meetings - and events
- such the recent Future Forum held in the
Midlands in October - policymakers are able
to engage directly with the public and the
business community.
“And they are able to hear, first-hand
accounts, about the issues facing both
Glynn Jones pictured with Brian Seadon at Telford Business Partnership
and gain insights into the workings of the
economy, including underlying dynamics of
change – not just what is happening here
and now.”
One of the more enjoyable aspects of
the job, according to Glynn, is interaction
with schools, and the business people of
tomorrow.
“The agencies have been instrumental
in the Bank’s schools’ challenge - Target
2.0 - which has been attracting entries from
over 250 schools from all over the UK for
nearly two decades, with agents acting as
judges in regional heats and finals.
“All in all it makes for a busy,
challenging but thoroughly rewarding job – I
can honestly say no two days are the same.
“And while the agencies have a long
pedigree, they continue to perform a vital
role for the Bank which recent events – not
least the heightened uncertainty following
the EU referendum vote to the more wide
ranging responsibilities given to the Bank by
Parliament - only serve to reinforce.”