Carney to head the Bank of England

The Bank of Canada announced that Her Majesty the Queen has approved the appointment of Mark Carney as Governor of the Bank of England, effective July 1, 2013. He will serve a five-year term.

Governor Carney will continue to serve in his current position until June 1, 2013 to ensure a smooth transition to the next Governor of the Bank of Canada. The Governor will remain Chair of the Financial Stability Board.

This past August, Carney denied he was interested in the position when asked about his future plans during a BBC World News interview. At that point, he said he was very “focused on [his] post at the Bank of Canada and the Financial Stability Board, and [was looking] forward to working with the new or the next governor of the Bank of England.”

Read: Carney talks tough on banks, rejects BoE job

It was rumoured, however, that he had been approached about the job. One reason the news was considered possibly merited is that Carney has an English wife and once worked in London for Goldman Sachs.

His appointment marks the first time a foreigner has been tabbed to run Britain’s venerable national bank.

Read: UK courted Carney for renown expertise

The Board of Directors will shortly form a special committee, comprised of independent directors whose mandate will be to undertake a recruitment process for the selection of the next Governor.

Governors of the Bank of Canada are appointed by the independent directors, subject to the approval of the Minister of Finance and the federal Cabinet.

Read: Carney makes Time magazine list

About his move, Governor Carney says:

“I am honoured to accept this important and demanding role, and to succeed Sir Mervyn King with whom I have worked closely over these past five years and from whom I learned so much.

This is a critical time for the British, European and global economies; a decisive period for reform of the global financial system including its leading financial centre, the City of London; and a crucial point in the Bank of England’s history as it accepts vital new responsibilities.

It has been a privilege to serve as the eighth Governor of the Bank of Canada. I am proud of the Bank’s contribution to the resilience of the Canadian economy throughout an unprecedented period of global turmoil. The Bank is helping to lead the reform of the global financial system. It is introducing the most sophisticated currency in the world. And as the Government of Canada’s fiscal agent, it is providing funds management and banking services with the highest reliability and resiliency.

Canadians can be confident that such leadership will continue. The depth and quality of its human resources, the dedication of its employees and the clarity of its strategic vision will ensure that the Bank will continue to promote the economic and financial welfare of all Canadians.

I would like to thank the Board of Directors of the Bank of Canada, Minister Flaherty and Prime Minister Harper for having given me this opportunity to serve Canada. I have done so to the best of my abilities and am humbled by the support I have received from both my colleagues at the Bank and from Canadians across this great country.”

Also read:

The Mark Carney bubble

Mark Carney is indestructible

Canadians better than the rest

Dealing with currency volatility, for his views on currency markets and how they affect the Cdn dollar