Knight joined the BBA in 2007, before which she was chief executive of the Association of Private Client Managers and Stockbrokers. She will stay in the role until someone is found to replace her.
She says: “I have been at the British Bankers’ Association at a time of extraordinary difficulty and during a crisis of a magnitude that few if any have seen before or expected.
“The BBA has played a strong part throughout this challenging period and has helped the industry it represents with the significant changes to regulation and legislation required. The UK banking industry has already undergone radical restructuring to make it fit for the future and I am pleased to have played a part in this.
Marcus Agius, chairman of the BBA, says: “She has piloted the British Bankers’ Association – and the industry – with skill and determination through turbulent times and leaves the organisation strengthened and well placed to respond to the challenges ahead.”
Knight was Treasury economic secretary under John Major between 1995 and 1997. She is a non-executive director on the boards of Brewin Dolphin, Tullett Prebon and a board member of the Financial Skills Partnership.