The Bank of England might make permanent some of the extraordinary programmes it has created during the financial crisis to give it the muscle it needs to ensure the stability of the nation’s banking system.

In a speech yesterday in Tokyo, Paul Tucker, deputy governor for financial stability, outlined the need for domestic monetary authorities to retain not only their traditional role as lender of last resort but also that of capital provider and market maker of last resort.

Tucker also said that if the Bank were also to take on these roles it would need a mechanism to charge banks for the risk it incurred in doing so.

Although he did not call specifically for the Bank to be given greater authority to supervise the UK banking system, the steps called for in his speech broaden its ability to influence the banking sector in a crisis.

Financial Times