30 SECOND GUIDE: The next governor

Updated: 03:50 EST, 13 April 2012

The Daily Mail City team explains how the next Bank of England governor will be chosen and who might be in the running.

Sounds like a B-Movie?

We're talking the Bank of England. Peter Sands, chief executive of Standard Chartered, has ruled himself out of the running.

New appointment: There is a limited number of possible candidates who could take over as governor of the Bank of England

Is that important?

Probably not. No one realised he was running. But it limits the government’s options – it is interested in appointing a career banker.

How is the governor chosen?

Behind closed doors by men (hopefully some women) in grey suits. The Chancellor has the biggest say but his is a recommendation which goes to the Prime Minister, and the Queen makes the appointment.

So who is in the frame?

It is a limited list because banking is so toxic. John Varley, formerly of Barclays, is mentioned but his near miss with ABN Amro could count against him.

Two other possibilities are former Standard Chartered chief Lord Davies or Lord Green the government’s trade minister who has enhanced his status in the current role. Bob Diamond’s tax status makes him a ‘no go’ area.

Deputy governor Paul Tucker is highly thought of in the City and has experience as a market practitioner.

Should the process change?

Of course. There ought to be a transparent process with an interview board followed by hearings at the Treasury Select Committee. Then pigs might fly.