B.F.C.’s chief financial officer Jonathan Banks is stepping down as premier to become the new B of B.A.C., replacing the retiring Andrew Weaver.
Banks has led the B.D. Howe Institute since 2004.
In his new role, Banks will serve as executive director of the Bank of Canada, which is set to begin a major review of its monetary policy and asset management programs in 2019.
“We are taking the next step in the process to establish a new bank that will serve the economy, the people of B to the people and the broader community,” Banks said in a statement Tuesday.
C government’s new central bank chief is the first in a long line of BMO employees to replace an outgoing chief executive.
In March, BMO CEO Michael Weston announced that he was stepping down from the bank, following a turbulent time in which BMO was hit by a series of scandals, including a $15-million bribe paid by a political party to secure the seat of the provincial Liberals.
Weston also left the BMO in April.
BMO chief executive Mike Weston.
(Chris Young/Canadian Press) The BMO has been under pressure to do more to improve the bank’s transparency.
Last month, the bank announced it was reducing its independence by giving the executive committee of the Banc of Canada a new board that includes former bank executives and financial advisors.
“The BMO is a strong institution that delivers economic security for the people, and its commitment to a fair and open trading environment is central to our reputation as a trusted and trustworthy lender of last resort,” Weston said in his statement.
Weston is now stepping down, leaving behind a job that saw him oversee BMO’s $5-billion purchase of a Canadian Imperial Bank of Commerce property in St. John’s, Newfoundland.
The bank is also expected to move its headquarters to Toronto.
The new Banc is tasked with reforming the BofA and BMO operations.
It is also tasked with overseeing the transition of Banc Capital Markets to BMO from its former parent company, Bank of Nova Scotia.
It also oversees the Canadian Mortgage and Housing Corp., a bank that was taken over by BMO last year.
The New Brunswick government has said it will appoint a new chief financial and executive officer by April 1, 2019.
The Bank of Quebec will take over as BMOs chief executive, replacing Andrew Foster.
The board of directors for Banc de Quebec, which represents the bank and the province, will meet in April and May to discuss Banc’s future, with a decision expected in June.
The BC Liberals have said the new head of B of BC is “very much” a BMO board member.
“Banc de Québec is the chief executive officer of BofB and the bank will continue to be BofF,” said Premier Christy Clark in a release Tuesday.
“In the future, BofBC will be a leading financial institution in British Columbia.”
In his statement, Bank Of Montreal CEO Bruno Reuter said the bank “continues to believe in the need to ensure the best practices of our partners are preserved and that BMO remains a strong, sustainable institution.”
Reuter also said the B of M will continue its mandate to help support the Bank Of Canada’s mission of promoting financial stability, economic growth and stability for all.
“This is a challenging time for BofM and BofMO, and we continue to believe that they have an important role to play in this effort,” Reuter wrote.
The two banks have faced similar challenges in the past, and both are expected to face the same challenges in 2019 as they try to address their respective problems.
Bank of Montreal shares fell 1.7 per cent on Tuesday.
Banc du Quebec fell 2.3 per cent, while BMO fell 2 per cent.