New deputy governor of the Bank of England named

The new deputy governor of the Bank of England is to be Sir Jon Cunliffe. Photo: PA Wire

The new deputy governor of the Bank of England is to be Sir Jon Cunliffe. A name you may be forgiven for not instantly recognising - he certainly wasn't one of the front runners to replace Paul Tucker in one of the most powerful jobs in the financial world.

Sir Jon is currently the UK's top diplomat in Brussels, representing us to the European Union, and is a veteran of negotiating at international levels. It's precisely this talent which is most valued by Mark Carney, his boss-to-be at the Bank.

Increasingly, the Bank of England itself has to operate at international level as legislation affecting the City originates either with the EU or international bodies like the Financial Stability Board (FSB). Financial Stability - making banking safer - is the main area of responsibility for the new deputy governor.

In fact, Sir Jon already represents the UK at the FSB so knows the Board's chairman well... a certain Mark Carney. The two have worked with each other "for over a decade," he says. The governor has hired, as one of his lieutenants, someone he knows can handle politics, economics and the financial world.

How will Sir Jon fare in the new job? It's certainly becoming tougher to fend off unwelcome legislation from Brussels as many on the continent resent the success of the City of London - Europe's most successful financial centre - based in a country which has remained outside the euro.

Sir Jon's most recent appearance in the news was when he lost a battle to fend off a cap on bankers' bonuses. In future, the more he can avoid battles and instead use a diplomat's powers of persuasion, the better.