* Leaving for Bank of England next year
* Carney says able to leave Canada because it is solid
* Will continue financial reform in UK, manage BoE with new
By Randall Palmer
OTTAWA, Nov 26 Bank of Canada Governor Mark
Carney said on Monday he would be taking on the biggest
challenge going when he heads up the Bank of England next year,
joining the institution as it wins a broader, bigger role.
"I'm going to where the challenges are greatest," Carney
told an Ottawa news conference, adding he would not be moving if
he did not feel the Canadian financial system was in top shape.
"We have a system that works very well. It's been tested
under the biggest economic shock and financial shock that any of
us will ever see in our lifetime, and it has passed that test."
Describing an "on-and-off" debate about his being chosen for
the new job, Carney cited what he called the very positive
challenge of the continuing reform of the British financial
system as factoring into his final decision.
He said Britain was leading the world in these reforms, in
many respects, but reforms had to be seen through, and he also
wanted to help in the rebalancing of the British economy.
"Where I saw strengths here and confidence here, I weighed
that against the needs and the real challenges in the UK and
came to this decision," said Carney, who will keep his role as
head of the global Financial Stability Board, which is tasked
with making the world financial system a safer place.
Carney also referred to "the real management challenge of an
institution which obviously has the longest, most storied
history among central banks but is gaining a series of new
powers and needs to be relaunched."
"It's very important for the global economy that the UK does
well, that it succeeds in this rebalancing of their economy,
that the reform of the British financial system is completed...,
that the European transition comes to fruition; I will play a
Carney is arguably the most ambitious Bank of Canada
governor in recent memory, supremely confident in his abilities
from his time as a banker at Goldman Sachs, then the
Canadian finance department and the Bank of Canada.
His reputation for seeking challenges had fueled speculation
he could run for the leadership of the Liberal Party of Canada.
Carney will continue to serve at the Bank of Canada through
June 1 and then start at Bank of England on July 1.