The Chancellor said: "When we launched this process, we said we were looking for a leader of international standing with expertise across monetary, economic and regulatory matters.
"In Andrew Bailey that is who we have appointed. Andrew was the stand-out candidate in a competitive field. He is the right person to lead the Bank as we forge a new future outside the EU and level-up opportunity across the country."
The Treasury said an interim chief executive of the FCA would be appointed "well ahead" of Mr Bailey's departure until a permanent successor was chosen by the Treasury.
The FCA declined to comment.
What do you think about the issues raised by this story? Email us on email@example.com to let us know.