The deputy governor of the Bank of England has quit after just two years in one of the most prominent central banking roles.
Nemat Shafik, better known by her nickname Minouche, had a five-year contract at the Bank but resigned to become the first woman to run the London School of Economics.
The Egyptian-born economist, who is a British and US national, was appointed when the Bank was undergoing a restructuring under the then new governor, Mark Carney.
Her role overseeing banking and markets was a new one and gained importance as she oversaw a review of financial markets after the Libor rigging and foreign exchange manipulation scandals. Shafik also has a seat on the monetary policy committee, which sets interest rates, and the financial policy committee, which is charged with avoiding new crises in financial markets.
When she was appointed, Shafik, who also represented the Bank on international committees, was regarded as a potential candidate to succeed Carney. The governor’s term is scheduled to end in June 2018 although he has indicated he could stay longer.
Shafik is one of four deputy governors at the Bank, a structure created by Carney to adapt to powers handed to Threadneedle Street in response to the 2008 banking crisis.
She will leave the Bank in February but will not start her new role at the London School of Economics until September, after six months’ gardening leave.
via The Guardian