Carney named to head central banker forum

Tue Jun 29, 2010 12:17pm EDT
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By Louise Egan

OTTAWA (Reuters) - Bank of Canada Governor Mark Carney will chair a committee of global central bankers tasked with detecting and responding to threats of instability in the global financial system, the bank announced on Tuesday.

For three years starting July 1 Carney will preside over the Committee on the Global Financial System (CGFS), replacing U.S. Federal Reserve Vice-Chairman Donald Kohn, who is retiring.

The CGFS is one of the committees within the Bank for International Settlements (BIS) in Basel, Switzerland. It serves as a hub for central banks to discuss and share research and policy ideas.

"I look forward to maintaining the excellent reputation that this committee has built under Don Kohn's leadership," Carney said in a written statement.

"Its work will contribute importantly to identifying systemic trends and vulnerabilities and to advancing global financial system reforms," he added.

Carney is a rising star in the world of central banks, overseeing a famously resilient banking system and an economy that has recovered so swiftly from recession that he became this month the first central bank chief in the G7 advanced economies to start hiking interest rates after the recession.

Carney was named one of the world's most influential people by Time magazine earlier this year, and the former Goldman Sachs investment banker's appointment reflects a vote of confidence from 30 of his peers at a weekend meeting in Basel.

Carney received a baptism by fire after taking the helm at the Bank of Canada in 2008, just in time for the global credit crunch to hit.   Continued...

<p>Bank of Canada Governor Mark Carney poses for a portrait in Toronto June 23, 2010. REUTERS/Mark Blinch</p>