Sarah Breeden, currently the Bank of England's executive director of financial stability strategy and risk, will become deputy governor for financial stability on 1 November, succeeding Sir Jon Cunliffe.
Announcing the appointment, chancellor Jeremy Hunt said: "I am pleased to appoint Sarah Breeden as the next Deputy Governor of the Bank of England who brings extensive experience to the role including from her work as a member of the FPC and across monetary, economic and financial matters."
Governor of the Bank of England, Andrew Bailey, said: "I am delighted that Sarah has been appointed as Deputy Governor for Financial Stability. She will bring a wealth of financial and economic policy knowledge to the role, both domestically and internationally.'
Breeden has worked at the Bank since 1991, shortly after leaving Cambridge University. In the financial crisis she was responsible for the design of the Bank’s liquidity assistance to Northern Rock and led the Bank’s work on Northern Rock’s resolution.
Breeden said she was "thrilled" to have been appointed.
"The Bank plays a critical role in supporting UK prosperity and having been committed to central banking and public service for my entire career, it will be an honour and a privilege to take up this role," she said.