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UPDATE 2-Bank of Canada and BoE dismiss governor story
April 17, 2012 / 10:51 PM / 6 years ago

UPDATE 2-Bank of Canada and BoE dismiss governor story

* Bank of Canada says report of approach inaccurate

* Bank of England says no approaches made for next governor

* Financial Times said Bank of England made approach

* Bank of England must replace Governor King

April 18 (Reuters) - The Bank of Canada and the Bank of England on Tuesday dismissed as inaccurate a newspaper report that said Canadian Governor Mark Carney had been approached as a possible candidate to take over as head of Britain’s central bank.

The Financial Times cited three people involved in the process as saying Carney had been approached by a member of the court of the Bank of England, the largely non-executive body that oversees its activities.

“The FT report that Governor Carney was approached as a potential candidate for the head of the Bank of England is not accurate,” said Bank of Canada spokesman Jeremy Harrison.

Bank of England Governor Mervyn King is due to retire in June 2013.

In London, an official from the BoE said it has not made any approaches for a potential successor to King when he retires.

“The appointment of a new governor when Sir Mervyn King retires in summer 2013 is a matter for the government, not the court of the Bank of England. The court has not approached anyone in connection with this appointment,” said Sir David Lees, chairman of the court of the Bank of England.

The British Treasury told Reuters that no decision had been taken yet on the process of appointing King’s successor and said the finance ministry had not approached the court of the Bank of England for help.

“We will announce the selection process for the Governor in due course. We want the best person for the job,” the official said.

The BoE has faced heavy criticism from the country’s banks and some political quarters for not offering more support during the financial crisis.

One of BoE’s two deputy governors, Charlie Bean, who is also due to leave the Bank next June, has volunteered to stay on for a temporary period as the reorganisation takes place.

The BoE’s current deputy governor for financial stability Paul Tucker is the favourite to replace King.

Carney, who does not hold British nationality, took the helm at the Bank of Canada in 2008 and his mandate ends in 2015. He became chair of the Financial Stability Board, the body tasked with implementing global financial reforms, in November 2011.

Naming an outsider to head the British central bank would be a highly unusual break with tradition. Carney, who is married to a British woman, lived in London at one point during his Goldman Sachs career.

Carney is scheduled to hold a press conference on Wednesday at 11:15 a.m. (15:15 GMT) in Ottawa following the release of the central bank’s quarterly Monetary Policy Report.

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