(Adds reaction and background)
By Randall Palmer
OTTAWA, April 30 The Bank of Canada named Lynn
Patterson, 53, a former banker with extensive financial market
experience, as a new deputy governor on its rate-setting
Governing Council on Wednesday.
Patterson joined the Bank of Canada in June and has served
as special adviser to bank Governor Stephen Poloz and as the
senior representative for financial markets at the central
bank's Toronto office. She replaces John Murray, who is
Patterson has more than 25 years' experience in capital
markets, risk oversight and senior management, and was
previously president of Bank of America Merrill Lynch Canada.
"Lynn's extensive market experience and her understanding of
financial-sector issues make her a terrific addition to
Governing Council," Poloz said in a statement.
There has been a "changing of the guard" at the bank
recently with some policymakers retiring or stepping down, said
David Madani, Canada economist at Capital Economics in Toronto.
"They seem to be replacing them with people that not only
are perhaps a bit younger on average, but also have great
experience from a financial perspective," he said.
"I don't think it has any implication for monetary policy
because there's so much input from the other departments that
contribute to the end result in terms of the policy decision,
and that really hasn't changed."
Patterson's appointment, effective May 5, will mean that for
the first time women will hold half the seats on the six-member
It will also accentuate a shift away from PhDs at the bank.
Patterson will be the third member of the new Governing Council
without a PhD. Five of the six current council members have
Poloz and his predecessor, Mark Carney, both had PhDs as
well as corporate experience before becoming governor: Poloz at
Export Development Canada and Carney at Goldman Sachs.
In his April 11 appointment of Carolyn Wilkins, 50, as
senior deputy governor, Poloz had touted her experience with
Wilkins headed the bank's financial stability department
during the global financial crisis and negotiated with financial
market players on complex new rules for collateral use in the
over-the-counter derivatives market. That experience, however,
was from within the bank, rather than coming from the private
Patterson has a degree in business administration from the
University of Western Ontario and is a chartered financial
Turnover at the council, which plays a role similar to the
U.S. Federal Open Market Committee, has been rapid since the
start of last year. Four of the six members have been appointed
since February 2013.
They include Poloz, who took over as governor in June, and
Wilkins, who will take over from Tiff Macklem as the bank's No.
2 on May 2. Tim Lane, who became a deputy in February 2009, is
now the doyen of the group.
Poloz said in a statement he is also reallocating
responsibilities on the council.
Patterson and Lawrence Schembri will share oversight of the
bank's analysis and activities to promote a stable and efficient
financial system. Lane and Schembri had overseen the financial
Lane, with two decades of experience at the International
Monetary Fund, will oversee international economic analysis, a
task formerly done by Murray.
Agathe Cote, a 30-year veteran of the central bank, will
continue to have responsibility for domestic economic analysis.
The entire council will share responsibility for monetary
policy and financial system stability, and for setting strategic
(Additional reporting by Leah Schnurr in Toronto; Editing by
James Dalgleish, Jeffrey Hodgson and Peter Galloway)