Mark Carney, governor of Canada’s central bank, has been informally approached to be a candidate to replace Sir Mervyn King as head of the Bank of England in June next year.
One of the world’s most respected central bankers, Mr Carney also heads the Financial Stability Board, which oversees global financial regulation. He was approached recently by a member of the BoE’s court, the largely non-executive body that oversees its activities, according to three people involved in the process. Mr Carney declined to comment.
While Paul Tucker, the BoE’s deputy governor for financial stability, remains the favourite to replace Sir Mervyn, there is a growing view within the UK Treasury that the BoE needs shaking up following its ponderous response to the financial crisis. The BoE is set to take control of bank safety regulation from a disbanded Financial Services Authority next year.