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Turnover in the leadership of U.S. financial authorities is spilling over to global policymakers, such as the Financial Stability Board (FSB), which is tapping Bank of Canada governor Tiff Macklem to head up its committee that oversees systemic vulnerabilities.

The FSB appointed Macklem to chair its standing committee for the assessment of vulnerabilities (SCAV), which monitors for potential weaknesses in the global financial system and recommends actions to address issues it finds.

“At a time when the financial landscape is rapidly evolving, identifying and addressing vulnerabilities is paramount to maintaining global financial stability,” FSB chair Klaas Knot said in a release. “The 2023 banking turmoil underscored the importance of our work on both the assessment of vulnerabilities and resolution.”

Additionally, the FSB appointed Dominique Laboureix as chair of its resolution steering group (ReSG), which develops global standards and guidance for resolving systemically important financial institutions. Laboureix is chair of the Single Resolution Board, the central resolution authority in the EU’s Banking Union.

The ReSG was established in 2010 in the immediate aftermath of the global financial crisis, with a mandate to develop resolution tools and regimes to ensure that troubled financial institutions can be wound up without causing wider disruption and to guard against moral hazard in the financial sector.  

Macklem and Laboureix are both replacing outgoing U.S. officials. Nellie Liang, former under secretary for domestic finance with the U.S. Treasury, was the chair of the SCAV, and Martin Gruenberg, former chairman of the U.S. Federal Deposit Insurance Corp. (FDIC), chaired the ReSG. They left their posts in January as the new U.S. administration took power.

Both appointments, which are effective Tuesday, are for two-year terms that are renewable once.