A former Bank of America Merrill Lynch banker has been handed the task of returning the UK government’s stakes in Lloyds Banking Group and Royal Bank of Scotland to public ownership at an attractive price despite banking shares being in the doldrums.

Oliver Holbourn was on March 31 confirmed as the new chief executive of UK Financial Investments - the body responsible for managing the government's financial holdings - having been a key member of the senior executive team under executive chairman James Leigh-Pemberton, who becomes chairman.