By Margot Patrick 

LONDON-- Standard Chartered PLC named former Spanish central banker José Viñals as its next chairman, after searching for more than a year to replace the outgoing John Peace.

Mr. Viñals will start in October and officially take over the role from Mr. Peace on December 1.

Naguib Kheraj, the Standard Chartered director who led the search for a new chairman, will become Mr. Viñals' deputy, the bank said.

Mr. Viñals, all but unknown in British banking circles, is currently the financial counselor and director of the monetary and capital markets department of the International Monetary Fund. He joined the IMF in 2009 after rising to deputy governor in a 25-year career at the Bank of Spain.

Standard Chartered announced in February 2015 that Mr. Peace would leave the bank in 2016. But the search dragged on for months longer than expected as candidates willing to globe-trot and help oversee the bank's restructuring proved thin on the ground.

"José brings deep and extensive economic, political and regulatory experience of our markets and an exceptional grasp and understanding of the international financial system," Chief Executive Bill Winters said.

Mr. Winters replaced former CEO Peter Sands last year, in a changing of the guard at the bank after a decade of rapid growth ended abruptly with a sharp rise in bad loans. Mr. Peace will be the last top official from that earlier era to leave the bank.

In his new job, Mr. Viñals will help oversee a yearslong restructuring which is being carried out by Mr. Winters and other new managers. Standard Chartered is trying to reinvent itself as a smaller and more focused lender after overextending itself in a few concentrated areas such as energy and mining.

But while Mr. Viñals has vast experience in financial stability and banking oversight, he doesn't have any commercial banking experience, Standard Chartered officials confirmed.

Since the near-collapse of Cooperative Bank PLC in 2013 under a chairman with almost no business experience, the Bank of England has required any bank chairman to have worked in financial services, although not necessarily in the private sector.

Mr. Kheraj and Mr. Winters told journalists on a call that Mr. Viñals' lack of commercial experience wouldn't be a problem, since he brings other attributes to the job, such as having worked with central banks and finance ministers across the world.

Mr. Viñals' "personal chemistry and fit is very good with our team, " Mr. Kheraj said. He said his own ascension to deputy chairman wasn't required by regulators to approve Mr. Viñals's appointment. Mr. Kheraj previously ruled himself out of becoming chairman.

"In terms of last man standing, it's not like that at all," Mr. Kheraj said, when questioned on why it took so long to hire Mr. Viñals for the role.

Write to Margot Patrick at margot.patrick@wsj.com

(END) Dow Jones Newswires

July 27, 2016 12:34 ET (16:34 GMT)