Andrew Bailey will become a deputy governor of the Bank of England and chief executive of the bank’s new prudential regulation authority (PRA) from 1st April 2013.
He is already head of prudential supervision at the Financial Services Authority and was expected to be confirmed in the new job. The FSA will be scrapped at the end of March 2013 when the PRA becomes Britain’s main banking and insurance supervisor.
The revamp is part of the Britain’s attempts to draw a line under supervisory failures in the run-up to the 2007-09 crisis that forced the UK government to take a controlling stake in Royal Bank of Scotland and a large minority stake in Lloyds.
“Andrew Bailey has the right skills and experience to lead the Prudential Regulation Authority as it moves into the new era of judgment-led supervision,” Chancellor George Osborne said in a statement.
Mark Carney (the head of Canada’s central bank) takes over as Bank of England governor in July 2013.
There are two other deputy governors. Paul Tucker who is in charge of overall financial stability and Charles Bean who is in charge of monetary policy.