The Federal Reserve’s top supervisory official will soon acquire a new title: chairman of the international standard-setting body, the Financial Stability Board, after that group tapped him for the position Monday.
Federal Reserve Board Vice Chairman for Supervision Randal Quarles was appointed to the position for a three-year term. Klaas Knot (president of De Nederlandsche Bank) was appointed vice chair, also for a three-year term. The two begin their roles next week (Dec. 2), according to an FSB release. Quarles will be succeeded by Knot as chairman at the end of Quarles’ term in 2021, the FSB said.
In a statement released by the group he will soon chair, Quarles said the FSB has held a “central role” coordinating and building a resilient global financial system following the financial crisis a decade ago. “Ten years on, the FSB’s work remains just as relevant. With its broad membership, it is uniquely placed to promote resilience and preserve an open and integrated global financial system in the future,” he said. “I look forward to working with Klaas and all FSB members towards this goal.”
The FSB chair is selected from representatives on the plenary of the board, and appointed by the plenary for a three-year term (renewable once), according to the FSB. The group said the plenary made the appointments of Quarles and Klaas during a conference call of the FSB Monday, following a proposal by its nominations committee.
Based in Basel, Switzerland, the FSB is made up of national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts, according to the group.