Andrew Bailey, the head of the Financial Conduct Authority, has been appointed as the next governor of the Bank of England, Chancellor Sajid Javid said
The next governor is due to start in March, after incumbent Mark Carney steps down on January 31 2020.
Mr Bailey had been one of the long-term favourites to take over the position, but has come under heavy scrutiny over the past year amid a series of major auditing failures during his tenure at the financial services regulator.
Speaking in Westminster, Mr Javid said Mr Bailey would serve a full eight-year term as governor and would begin the new role on March 16, allowing for an "orderly transition".
The Chancellor added: "Without question he [Mr Bailey] is the right person to lead the Bank as we forge a new future outside the EU as we level up this great country."
Mr Javid said Mr Bailey had "unparalleled" and "unmatched" experience in the world of banking and also praised his leadership during the financial crisis of 2008.
In a statement, Andrew Bailey said: "It is a tremendous honour to be chosen as Governor of the Bank of England and to have the opportunity to serve the people of the United Kingdom, particularly at such a critical time for the nation as we leave the European Union.
"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. 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.
Mr Carney took up the post on July 1 2013 and extended his tenure twice.
He said in 2016 that he would stay for an extra year after his tenure ended – until June 2018 – but was then persuaded by then chancellor Philip Hammond to extend his term by another seven months to help ease disruption from Brexit at a critical time.
But the Canadian’s time at the helm has been marred over the past two years, with the governor and the Bank’s Monetary Policy Committee (MPC) coming under heavy criticism over their handling of communications surrounding Brexit.
In particular, the Bank’s doomsday scenario report on Brexit led to accusations of collusion with the Government and “implausible” forecasts.
In April, former MPC member David “Danny” Blanchflower told the PA news agency that Mr Carney was leaving a “poisoned chalice” for his successor, claiming the role had become too politicised.
The Treasury recruited a specialist headhunter to fill the £480,000-a-year post, with candidates expected to commit to at least eight years on the job.
Other contenders included London School of Economics director Minouche Shafik, Santander UK chairwoman Shriti Vadera and former member of the US Federal Reserve’s board of governors Kevin Warsh.