BoC governor will remain chairman of the Financial Stability Board

By IE Staff |

The Bank of Canada said Monday that Mark Carney has been appointed as Governor of the Bank of England effective July 1, 2013.  He will serve a five-year term.

Carney replaces Sir Mervyn King.

Carney will continue to serve in his current position as BoC governor until June 1 to ensure a smooth transition to the next governor of the Bank of Canada. 

Carney will remain chairman of the Financial Stability Board.

Finance Minister Jim Flaherty called it a bittersweet moment as he announced Carney's new job.

Flaherty says it's the first time a foreigner has been tabbed to run Britain's venerable national bank.

Carney was appointed to run the Bank of Canada in February 2008 and led it through a tough recession. He had previously served as Senior Associate Deputy Minister of Finance and G7 Deputy of Canada.

"As Minister of Finance, I appreciate the guidance Governor Carney has provided in recent years, in fulfilling the Bank's mandate of maintaining the stability of our monetary system and controlling inflation," said Flaherty.

The usual practice for selection and appointment of the governor of the Bank of Canada will be followed, the Finance Dept. said.

The BoC board of directors of 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 are recommended by the independent directors, and appointed by the finance minister of and the federal cabinet.

With files from the Canadian Press