Bailey, a favourite for the position, has been appointed for an eight-year term starting in March 2020, receiving a salary of £495,000.

An interim FCA chief executive will be appointed before Bailey’s departure to manage the organisation until a permanent successor is chosen, HM Treasury said.

Bailey has led the FCA since July 2016, having previously held the role of deputy governor of the Bank of England for prudential regulation and CEO of the Prudential Regulation Authority (PRA).

He has been a member of the bank’s Financial Policy Committee since 2012.

Bailey will be the 121st governor in the bank’s 325-year history and the ninth to be appointed since the bank’s nationalisation in 1946.

Carney, who took on the role in 2013, has extended his stay in the position, and will remain at the helm until 15 March.

Critical time

Bailey said it was a tremendous honour to be chosen as governor, particularly at such a critical time.

“The bank has a very important job and, as governor, I will continue the work that Mark Carney has done to ensure that it has the public interest at the heart of everything it does,” he said.

“It is important to me that the bank continues to work for the public by maintaining monetary and financial stability and ensuring that financial institutions are safe and sound.

“I am committed to the bank being an accessible and approachable institution, as well as an open and diverse place to work,” he added.

Wise counsel

Carney said he was delighted to welcome Andrew Bailey back to the bank as its next governor.

“Andrew brings unparalleled experience, built over three decades of dedicated service across all policy areas of the bank, and most recently as CEO of the FCA,” Carney said.

“Andrew is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.

“Over the years, I benefited greatly from his support and wise counsel. I wish Andrew and the bank continued success in their work to serve the people of the United Kingdom by maintaining monetary and financial stability,” he added.