The current head of the Financial Conduct Authority (FCA) has emerged as the front runner to become the next governor of the Bank of England.

Andrew Bailey is tipped to take over from Mark Carney when he leaves at the end of January. The governor is appointed by the Treasury.

Mr Bailey, 60, previously worked for three decades at the Bank.

He became deputy governor and head of its regulatory arm, the Prudential Regulation Authority, before leaving to become chief executive of the FCA, the City regulator, in 2016.

Governor of the Bank of England, Mark Carney, unveils the full design of the new £20 note featuring JMW Turner
Image: Mark Carney steps down at the end of January

Mr Bailey has long been seen as one of the favourites to succeed Mr Carney, but his chances were thought to have been damaged by financial scandals that have hurt consumers, some of them on his watch at the FCA.

The collapse earlier this year of funds managed by top stock picker Neil Woodford raised questions about the role of the regulator.

It is also facing an independent investigation over its actions and policies when regulating investment firm London Capital & Finance, which went into administration in January.

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Mark Carney has been governor of the Bank of England since 2013 – and his tenure has twice been extended to ensure stability in the run-up to Brexit.

The issue has seen Mr Carney become a controversial figure for Brexit-supporting critics, who have accused him of bias.

Dame Minouche Shafik was apparently rejected because of her views on Brexit
Image: Dame Minouche Shafik was apparently rejected because of her views on Brexit

Candidates’ views on Britain’s departure from the EU were reportedly taken into account when choosing his successor.

According to the Financial Times, which first reported that Mr Bailey was the favourite for the post, another former BoE deputy governor, Dame Minouche Shafik – was rejected partly because of her critical views on Brexit.