The Treasury named Andrew Bailey as a Deputy Governor of the Bank of England and chief executive of the bank's new prudential regulation authority from April 1.
Bailey, former Chief Cashier at the bank, is already head of prudential supervision at the Financial Services Authority that will be scrapped at the end of March, with its banking supervision role transferred to the new Bank subsidiary.
"Andrew Bailey has the right skills and experience to lead the Prudential Regulation Authority as it moves into the new era of judgement-led supervision," Chancellor George Osborne said in a statement.
"Putting the Bank of England in charge of prudential regulation is at the heart of the Government's reforms to regulation of financial services."
(Reporting by Huw Jones, editing by Sinead Cruise)