Charles Randell, currently an external member of the Prudential Regulation Committee (PRC) of the Bank of England, will succeed John Griffith-Jones at the Financial Conduct Authority (FCA) on 1 April.
Sky News reported last weekend that he had been a front-runner for the post - which has a five-year term.
It was also confirmed that the corporate finance specialist had been handed the role of chair of the Payments Systems Regulator.
The appointment comes at an important time for the financial services sector amid the challenges posed by Brexit - opposed by the vast majority of the City's international firms.
It also reunites Mr Randell with Andrew Bailey, the FCA's chief executive and former boss of the Prudential Regulation Authority (PRA), who said of the decision: "I am very pleased to welcome Charles to the FCA.
"His experience of regulation, both during the financial crisis and more recently as a member of the Prudential Regulation Committee, mean that he has a strong understanding of the challenges that the FCA faces and I look forward to tackling these with him in his new role."
The Chancellor, Philip Hammond, said: "I am delighted to appoint Charles Randell as chair of the FCA.
"Charles has a wealth of relevant experience, and I am sure that he will prove to be a strong leader at this very important time."
Mr Randell was among those advising the-then Labour government on resolutions concerning Northern Rock, Bradford & Bingley and the Icelandic banks at the height of the 2008 financial crisis.
He has resigned from his position on the Bank's PRC ahead of his new roles.
Governor Mark Carney said: "Charles has been a highly valued member of the PRC since its establishment.
"Drawing on his deep expertise in corporate finance and sound judgement, Charles has helped guide the PRA's most important policy and supervisory decisions.
"His governance expertise has also made an important contribution to the PRA's development.
"Although he will be sorely missed, I am very pleased that he is willing to serve as the chair of the FCA Board at this important juncture for that organisation and UK financial services, more generally."