Andrew Bailey has been appointed as chief executive of the Prudential Regulatory Authority and deputy governor of the Bank of England.
This is the role that Sir Hector Sants was due to hold prior to his departure from the Financial Services Authority last year.
Mr Bailey joined the Bank of England in 1985 and has held various roles such as executive director for banking services and chief cashier. 
He joined the FSA in April 2011 as deputy head of the Prudential Business Unit and become managing director of the unit in July 2012.
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Chancellor George Osborne said: "Andrew Bailey has the right skills and experience to lead the PRA as it moves into a new era of judgment-led supervision. Putting the Bank of England in charge of prudential regulation is at the heart of the Government's reforms to regulation of financial services."
Mr Bailey said: "I am very honoured to have been chosen for this role and excited to see the PRA taking shape. We have a big job ahead to ensure the UK has a stable financial system made up of banks, insurers and investment firms able to support activity in the economy and the needs of the public."
The PRA will come into force on 1 April 2013 and be responsible for prudential regulation and supervision of banks, building societies, insurers and major investment firms.

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