Sir Andrew named deputy Bank governor

The Chancellor, Gordon Brown, yesterday ended weeks of speculation by naming Sir Andrew Large, a former merchant banker and City regulator, as deputy governor of the Bank of England.

But the announcement came too late for today's two-day meeting of the Monetary Policy Committee as Sir Andrew has a "prior engagement" that prevents him taking his seat on the interest rate committee.

Sir Andrew, 60, has been deputy chairman of Barclays since 1998 and before that was chairman of the Securities and Investments Board. He worked in investment banking from 1970 to 1990. He will be one of two deputy governors and will be responsible for financial stability, a job that has traditionally gone to someone with extensive City banking experience.

Mr Brown said: "He will bring to the Bank a wealth of expertise from the private sector as well as his experience as a financial regulator in the public sector. "His international work over many years and the international reputation he enjoys will be of invaluable assistance to the Bank and our country in meeting the current challenges of the global economy."

Sir Edward George, the Governor of the Bank, said: "Sir Andrew is a widely respected figure in the City who has had very broad experience in financial markets, having worked in them as a participant and as a regulator."

He succeeds David Clementi, who made clear over the summer that he would step down on 31 August. City analysts had grown increasingly exasperated that the Treasury had delayed the appointment.

However it is understood that Sir Andrew's name had been at the top of the Treasury's shortlist for some but the decision was delayed until the Chancellor, who was on holiday until Monday, could meet the Governor.

However critics had said the Government struggled to find a City candidate willing to step into the role just 10 months before Sir Edward retires. The salary was also said to be an issue. Mr Clementi was paid £207,085 a year – a sum dwarfed by some City salaries. Sir Andrew received a package of £175,000 from Barclays in the 2001 financial year.