Bank of Canada Governor Mark Carney announced that he is stepping down as of July 1 after serving nearly five years. The central bank head, who has received accolades across the globe, will take the top job at the Bank of England.
Canadian Finance Minister Jim Flaherty called a press conference and issued a news release to confirm that Carney will become the new head at the Bank of England, the first time that a non-British national has been appointed and will lead the British central bank.
Carney’s appointment was declared by Chancellor of the Exchequer George Osborne in a statement to Parliament made Monday.
“This appointment, which marks the first time a foreign national has headed the Bank of England, is another strong example that Canada’s monetary and fiscal systems serve as models to the world,” stated the Conservative finance minister. “While other countries have faced significant turbulence, our financial system has consistently been ranked as the soundest in the world.”
The Bank of Canada head was first appointed on Feb. 1, 2008 and has been accredited for saving the country’s financial system and stabilizing the structure, despite the economic collapse throughout the globe for the last few years.
“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,” added Flaherty.
Carney previously served as Senior Associate Deputy Minister of Finance and G-7 Deputy of Canada. He was also recently named as the chair of the Financial Stability Board. For 13 years, he worked with Goldman Sachs in its London, New York, Tokyo and Toronto offices.
“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,” said Carney in a statement released by the Bank of Canada.
“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.”
The Board of Directors will soon create a Special Committee to undergo a recruitment process for the next Bank of Canada Governor. The next governor will be appointed by the independent directors and then approved by the Minister of Finance and federal cabinet.