Andrew Bailey has been appointed as the Bank of England's Deputy Governor for Prudential Regulation and chief executive of the Prudential Regulation Authority.

Bailey, who is currently the central bank's chief cashier and an executive director as well as managing director of the Financial Services Authority's (FSA) Prudential Business Unit, will take up his new roles on April 1.

"I am very honoured to have been chosen for this role and excited to see the PRA taking shape," said Bailey in a statement.

"We have a big job ahead to ensure the UK has a stable financial system made up of banks, insurers and investment firms able to support activity in the economy and the needs of the public.

"There have been important and painful lessons from the financial crisis and we must ensure that the UK has a successful system of financial regulation now and for the future."

As of April, the PRA will become responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms following government reforms to banking.

The PRA was created by the Financial Services Act 2012 and will be part of the Bank of England, which is taking responsibility for financial regulation from the FSA.

"Andrew Bailey has the right skills and experience to lead the Prudential Regulation Authority as it moves into the new era of judgement-led supervision," said Chancellor George Osborne, who made the appointment, in a statement from the Treasury.

"Putting the Bank of England in charge of prudential regulation is at the heart of the Government's reforms to regulation of financial services. It will be a tough, forward-looking regulator, focused on the stability of banks, other deposit takers and insurers - and with a mandate to protect policyholders."