Britain’s new finance minister George Osborne has announced a major shake-up of financial regulation in the UK.
The Bank of England is to be given ultimate control over supervision.
The UK central bank will take over from the Financial Services Authority which will cease to exist in its current form.
Osborne also unveiled a new independent banking committee to look at reforming the industry.
At the same time the Conservative-Liberal Democrat coalition government announced the cancellation or suspension of projects costing 11.5 billion pounds (13.8 billion euros) to try to trim Britain’s budget deficit which is the equivalent of 187 billion euros.
The government is also due to present an emergency budget next Tuesday and a detailed spending review later in the year.