By David Barwick – FRANKFURT (Econostream) – European Central Bank Executive Board member Isabel Schnabel is set to become the International Monetary Fund’s next Financial Counsellor and Director of its Monetary and Capital Markets Department from January 4, 2027, the IMF said Thursday.

IMF Managing Director Kristalina Georgieva announced her intention to appoint Schnabel to the position in a statement, describing her as a highly distinguished economist and policymaker with deep expertise spanning central banking, capital markets and financial stability.

“Throughout her impressive career, Isabel has demonstrated intellectual leadership in research and in practical policymaking,” Georgieva said in the statement.

Schnabel has served on the European Central Bank’s Executive Board and Governing Council since 2020 and is currently responsible for market operations, research and statistics, as the IMF observed.

During her time at the central bank, she played a central role in its response to the pandemic, the 2022 energy-price shock and periods of financial-market stress, according to the statement.

The IMF also credited Schnabel with leading the development of the ECB’s new monetary policy implementation framework and promoting the use of artificial intelligence and modernization of supervisory and statistical reporting.

Before joining the ECB, Schnabel was a member of the German Council of Economic Experts, Vice Chair of the Advisory Scientific Committee of the European Systemic Risk Board and Chair of the Advisory Board of German financial regulator BaFin, the IMF said.

Georgieva also highlighted Schnabel’s leadership and communication skills.

“At a time of profound transformation, her intellectual leadership, policy experience, and commitment to international cooperation will further strengthen the Fund’s work to promote global monetary and financial stability,” she said.

In a statement, the ECB said Schnabel's successor would be appointed in accordance with the procedure set out in the Treaty on the Functioning of the European Union, adding that, if necessary, her Executive Board responsabilities would be temporarily reassigned to other Board members.

Lagarde said Schnabel had "played a key role in the ECB's determination to stabilize inflation at our 2% medium-term target and has contributed enormously to the modernization of the ECB's operations to meet the challenges of the 21st century."

She added that Schnabel's commitment to public service, the ECB and the people of Europe had been "invaluable."