Bank of Canada Governor Mark Carney has been named Chairman of the Financial Stability Board (FSB). The FSB is an international agency dedicated to building a more resilient and efficient global financial system. It coordinates the work of national financial authorities and international standard-setting bodies, and develops and promotes the implementation of effective regulatory, supervisory and other financial sector policies.
The appointment, for a term of three years, was confirmed by G-20 Leaders at their summit in Cannes, France. “I am honoured to assume this new role,” said Governor Carney. “My appointment reflects the strong reputation of Canada’s financial system and the leading role that Canada has played in helping to develop many of the most important international financial reforms.”
Mr. Carney will remain Governor of the Bank of Canada during his chairmanship of the FSB. He succeeds Mario Draghi, who was Governor of the Bank of Italy during his term as Chairman of the Financial Stability Board and its predecessor, the Financial Stability Forum (FSF). Mr. Draghi became President of the European Central Bank on 1 November 2011.
Philipp Hildebrand, Chairman of the Governing Board of the Swiss National Bank, will serve as Vice-Chair of the FSB
BMO President and Chief Executive Officer Bill Downe said the appointment of Carney is the “right person at the right time.”
Downe noted the importance of dialogue between the regulators and the regulated. “The Canadian system worked during the challenges of the global financial crisis,” he said, “and one of the reasons why it worked is because there was early, open and frequent dialogue between Finance Minister Jim Flaherty, Governor Carney, Banking Superintendent Julie Dickson, and the CEOs of the banks and insurers. There is a high level of trust between all of us – which continues to serve Canada and its financial system well.”