StanChart's Davies steps down for government role

LONDON (Reuters) - Standard Chartered (STAN.L) said Mervyn Davies stepped down as chairman of the Asia-focussed bank on Wednesday to take up a key role in the government.

Davies, highly regarded after leading Standard Chartered as chief executive from 2001 to 2006 and as non-executive chairman in the last two years, is leaving with immediate effect to take up a role as minister for trade promotion and investment.

Standard Chartered appointed Deputy Chairman John Peace as acting chairman and has started the search for a full-time successor.

Davies joined Standard Chartered in 1993 and had been on the board since 1997. He has been praised for implementing a clear strategy targeting Asia, Africa and the Middle East.

By 8:50 a.m. British time, Standard Chartered shares were down 1.6 percent at 822 pence, in line with a weaker European banking sector.

(Reporting by Steve Slater; editing by Simon Jessop)