LONDON (Reuters) - Britain's finance ministry has appointed U.S. academic Anil Kashyap to serve on the Bank of England's Financial Policy Committee which oversees potential risks from the banking sector to the British economy.

Kashyap, a professor of economics and finance at the University of Chicago Booth School of Business and a former economist for the U.S. Federal Reserve's board of governors, joins the FPC as an external member and will start a three-year term in October.

"Anil is a highly-respected academic and is widely regarded as one of the leading experts on financial risk," finance minister Philip Hammond said in a statement on Thursday.

(Reporting by Andy Bruce; editing by William Schomberg)