The Department of Finance will name the new governor of the Central Bank early next week, with Robert Watt, a senior civil servant, expected to take the post.
An economist with experience running the Department of Public Expenditure and Reform, Mr Watt has emerged as the favourite to become the next governor of the Central Bank over the past few months.
Philip Lane, the Whately Professor of Political Economy at Trinity College Dublin, is also reported to be a strong contender for the job.
As the secretary general of the public expenditure department, Mr Watt is seen as having steered what is potentially one of the most controversial departments through one of the toughest economic periods in the history of the state.
In the past, the secretary general of the Department of Finance has traditionally gone on to become the governor of the Central Bank. Brian Lenihan, the former finance minister, broke that cycle in 2009 when he appointed Patrick Honohan, then an economics professor at Trinity College Dublin, amid criticism of the country’s financial regulation regime.
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Ann Nolan, the second secretary general of the finance department, has been tipped to take over from Mr Watt as secretary general of the Department of Public Expenditure and Reform if he gets the Central Bank job.
The Central Bank is looking to revamp its executive team as its two most senior executives will both have departed by the end of November.
Mr Honohan, the Bank’s current governor, announced in May that he would retire at the end of that month, a year earlier than scheduled.
Stefan Gerlach, the deputy governor, said last month that would not be seeking a renewal of his contract as he plans to return to Switzerland to pursue other interests.
A number of challenges face the new governor, both at home and in dealing with the European Central Bank (ECB). There is growing political pressure to tweak the new mortgage lending rules, particularly the requirement for a 20 per cent deposit. The mortgage arrears crisis will also need to be addressed.
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The successful candidate will sit on the governing council of the ECB, which is responsible for monetary policy in the eurozone.
The single supervisory mechanism (SSM), also based in the ECB, is the main institution of the new EU banking union. The new governor will implement decisions handed down through the SSM, which aims to ensure that the financial crisis is not repeated.