Canadian banker to head Financial Stability Board

Bank of Canada governor Mark Carney will be named chairman of the Financial Stability Board, which is charged by the G20 to work on banking sector regulation, The Globe and Mail reported on its website. The newspaper, which cited an anonymous source close to the matter, said Carney's nomination to replace Italian central bank governor Mario Draghi as head of the FSB would be made at the end of the G20 summit in Cannes. Carney, 46, has been credited with the Canadian banking system's success in weathering the 2008 financial crisis by injecting liquidity into the economy without going too far. The G20 decided in April 2009 to replace the Financial Stability Forum, which was created in 1999 following the Asian financial crisis, with the Financial Stability Board, which has a broader mandate to strengthen global financial regulation and oversight. The board brings together central banks, finance ministries and regulators from about 20 countries, as well as the Basel Committee on Banking Supervision, the International Monetary Fund and the Organization for Economic Cooperation and Development. During testimony Tuesday before a parliamentary committee, Carney refrained from criticizing Greece for announcing plans for a referendum on a eurozone agreement to deal with the debt crisis. "If it's the judgment of the Greek government that this is the best approach to validate that support, we fully respect that," Carney said.