Carney to head global financial body

Bank of Canada governor Mark Carney has been named chairman of the world's foremost internationalfinancial oversight body.

Carney will take over the chair of the Basel Committee on the Global Financial System on July 1.

The announcement was made in Basel, Switzerland, on Tuesdayin a release fromthe 30 world central bankers who are members of the Bank of International Settlements.

The BISis the world's foremost international body responsible for identifying potential sources of stress in global financial markets and promoting reforms.

It is essentially a forum for central banks to discuss policy issues related to financial markets and systems something akin to aUnited Nations for financial issues.

Later this summer, the group is expected to unveil the Basel III regulations, which will outline the rules under which banks must operate in almost all of the world's developed economies.

It's anticipated that a cornerstone of that agreement will be a blanket rule of how much capital banks must hold in reserve to back their loans.

Carneyreplaces Donald Kohn, who is retiring from the U.S. Federal Reserve's board of governors. The appointment carries a three-year term.

Carney has been head of Canada's central bank since February 2007.