Kathryn Fagg, a former executive of ANZ, is to join the board of the Reserve Bank of Australia. The treasurer, Wayne Swan, announced Fagg's appointment yesterday.Fagg, a chemical engineer by training, worked as general manager for retail banking in New Zealand and then as managing director for banking products for Australasia. She later shifted into the institutional side of the business and left ANZ in late 2000.She later worked for Linfox Logistics and BlueScope Steel. Early in her career she worked for Esso and then in consulting for McKinsey & Co.Few, if any, previous RBA board members have had any banking experience, one exception being Jillian Broadbent, an investment banker, whose spot on the board Fagg takes.Swan also announced the decision to extend the term of the RBA governor, Glenn Stevens, for a further three years.The treasurer also appointed Paul Costello and Gina Cass-Gottlieb to the Payments System Board of the Reserve Bank for five-year terms from 15 July 2013. Costello was previously the general manager of the Future Fund.Cass-Gottlieb is a competition lawyer who has worked extensively on Australian payment systems' regulation.