The son of a former Bank of England governor has been appointed chief executive of the body that manages government stakes in the Royal Bank of Scotland and Lloyds Banking Group.
James Leigh-Pemberton, currently UK head of Credit Suisse, will head UK Financial Investments (UKFI), the body created in November 2008 as part of the UK's response to the financial crisis. He is the son of Robin Leigh-Pemberton, who was Bank of England governor for a decade until 1993.
Chancellor George Osborne hailed Mr Leigh-Pemberton as "the right person" to aid the recovery of the UK banking system.
Mr Leigh-Pemberton replaces Jim O'Neil at the helm of UKFI, who is taking up a position at Bank of America Merrill Lynch.
The chairman of UKFI, Robin Budenberg, is also stepping down. Mr Leigh-Pemberton will become executive chairman when Mr Budenberg leaves at the end of the year.
Mr Osborne said: " I'm delighted that UK Financial Investments has been able to secure James Leigh-Pemberton's appointment as chief executive and, in due course, executive chairman.
" His significant experience in the financial services industry, gained over two decades, makes him the right person to take us through the next phase of our plan for the recovery of Britain's banking system.
" I'd also like to record my sincere thanks to both Jim O'Neil and Robin Budenberg for their invaluable contributions towards building a stronger banking system that supports Britain's economy, businesses and consumers."
The Government currently owns 81% of Royal Bank of Scotland and 39% of Lloyds.