The Central Bank has poached a top French banking official to become the new financial regulator.

Cyril Roux will replace Matthew Elderfield as head of financial regulation and deputy governor at the Central Bank at the beginning of October.

Roux is currently the number two man in charge of banking and insurance at France's ACPR regulator. He's also worked for the French finance ministry and the insurance company AXA.

Newstalk understands that the Harvard University-educated Roux will be paid a salary of €310,000 a year, the same as Elderfield.

"I'm honoured by this appointment and very aware that restoring the Irish economy to full health requires effective financial supervision. I'm looking forward to joining the Central Bank with that purpose in mind and to take up where Matthew Elderfield is leaving off," he said in a statement.

He will have to hit the ground running. The Central Bank is involved in a number of key projects.

The first is overseeing the resolution of the mortgage arrears crisis. The bank is currently attempting to force banks to deal with customers in distress by monitoring the long-term deals they are offering borrowers.

And it is also planning a review of the bank's loan books to assess if they require more capital.

Elderfield is leaving the job after three years to take up a role with the British bank Lloyds.