Dame Minouche Shafik will leave at the end of February 2017 ahead of taking up a directorship at the London School of Economics, according to a statement from the UK central bank on September 12.
The job of finding her successor now falls to the UK Treasury – led by Chancellor of the Exchequer Philip Hammond since July 13 – and the Bank of England said the role would be advertised in due course.
Shafik joined the central bank as deputy governor for markets and banking in August 2014 and is also a member of the central bank’s Monetary Policy Committee, the Financial Policy Committee, the board of the Prudential Regulation Authority and the Bank’s Court of Directors. Her appointment had been due to run until July 31, 2019, according to the Bank of England’s website.
Mark Carney, governor of the Bank of England, said in a statement that Shafik had “helped drive vital reforms on the domestic and international stages, perhaps most prominently in the successful completion of the Fair and Effective Markets Review which she co-chaired”.
Established by former Chancellor George Osborne in June 2014, the purpose of the Fair and Effective Markets Review was to analyse the conduct of financial firms operating in the fixed income, currency and commodities – or FICC – markets. It was launched in response to benchmark-rigging scandals in the Libor and FX markets.
A number of high-profile names from the City of London, including HSBC’s investment banking chief Samir Assaf and Allianz Global Investors‘ then-CEO Elizabeth Corley, made up a special panel of market practitioners that fed into the review.
In June 2015, the Bank of England recommended reforms aimed at restoring trust in the FICC markets, including longer prison sentences for market abuse and direct regulation of the spot FX market.
An implementation report published by the chairs of the review in July this year found that “significant progress” had been made to implement the 21 recommendations. However, the report said it would be a “mistake” to consider the job done, citing a “lack of trust” in financial markets and institutions due to past misconduct.
Shafik will not take up her new post as the London School of Economics until September 2017. Shafik, herself an alumnus of the business school, will become its first permanent female director
Prior to joining the Bank of England, Shafik had been deputy managing director at the International Monetary Fund, where she oversaw operations in Europe and the Middle East and looked after a $ 1 billion administrative budget.
Shafik said in the September 12 statement she had “especially enjoyed connecting the dots and the people across the Bank’s monetary, macro-prudential and micro-prudential policy responsibilities”.
“Together we have stood up to every test, maintaining stability with a modern approach,” she added.