Fed governor to replace Carney as FSB chair

U.S. Federal Reserve governor and vice-chairman for supervision Randal K. Quarles will be the next Financial Stability Board chair, replacing Bank of England governor Mark Carney whose seven-year term ends this week.

Quarles will start his three-year term on Dec. 2. Klaas Knot, president of De Nederlandsche Bank, has been named vice-chair and will take over as chair for the next three-year term starting in 2021.

Carney, who became FSB chair in 2011, sent a letter to G20 leaders Tuesday ahead of their summit in Buenos Aires, Argentina. The Bank of England governor urged leaders to safeguard progress in creating a “safer, simpler and fairer financial system.”

“Eight-hundred years of economic history teaches that as memories fade, complacency sets in, and backsliding begins,” Carney wrote. “In financial stability, success is an orphan.”

He highlighted four priorities for the year ahead:

• addressing emerging vulnerabilities while harnessing the benefits of innovation;
• completing and implementing the G20’s reform priorities;
• pivoting to policy evaluation to ensure reforms are delivering resilience efficiently; and
• optimizing how the FSB works to maximize its effectiveness and transparency.

Read the full letter here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.