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Federal Reserve's Quarles to chair Financial Stability Board
[LONDON] US Federal Reserve Governor Randal Quarles has been appointed chair of the Financial Stability Board, the international regulatory body said on Monday.
He replaces Bank of England Governor Mark Carney, who steps down in December as chair of the FSB, a body that has been coordinating new banking rules for the Group of 20 (G-20) since the global financial crisis a decade ago.
The FSB said that Klaas Knot, president of the Dutch central bank, was appointed vice-chair and will succeed Mr Quarles within three years for a period of three years.
Mr Quarles was appointed by US President Donald Trump as the Fed's first head of banking supervision last year.
Regulatory sources have said that the appointment of the transatlantic duo, first reported by Reuters, is seen by Europeans as helping to keep Washington fully engaged in the FSB, while also giving Europe an influential role.
Mr Quarles said the FSB's work remains relevant a decade after the financial crisis.
European regulators were alarmed when Mr Trump last year directed US regulators to review post-crisis regulations with an eye to stimulating lending and boosting the economy.
But the Fed under Quarles and Chairman Jerome Powell has largely steered a moderate course, moving to refine and tailor post-crisis regulations in line with firms' risk profiles.
Sensing that many governments want a pause in the heavy bout of rulemaking that followed the financial crisis, the FSB has already signalled a change in course and speed.
"Randy and Klaas will provide strong leadership and continuity as the FSB pivots towards the implementation and evaluation of post-crisis reforms, and to addressing emerging vulnerabilities in the global financial system," Mr Carney said in an FSB statement.