The Bank of England and the Financial Services Authority were today handed greater proposed powers as the UK Chancellor of the Exchequer detailed the most sweeping banking system reforms since the Financial Services and Markets Act created a single financial regulator in 2000.

The reforms, which Chancellor Alistair Darling presented to the UK Parliament today, come in the wake of the global credit crisis and the problems at UK lender Northern Rock last year that sparked questions over the country’s financial market supervisory regime. They also take into account the findings last week of the Treasury Select Committee's investigation into the Northern Rock crisis.