Knight said she would stay on while the search for her successor is concluded.
She has been at the BBA for five years and has, in that time, seen the organisation grow providing representation and policy co-ordination for over two hundred member banks.
Knight said: “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.
"I leave the BBA in good health and heart. It has a strong and forward looking team of excellent and committed individuals who will be as great a support for my successor as they have been to me.”
Marcus Agius, chairman of the BBA, said: “I would like to pay tribute to Angela Knight’s extraordinary leadership and energy. 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.
“Angela has been instrumental in overseeing the BBA’s development as the key voice in the debate on the future of the banking sector and the industry is grateful for the leadership she has shown through these difficult times. I wish her all the best for the future.”
The BBA said that a search for Knight’s successor is underway.
