It included the pledge as part of its program of policies for the next parliament and said it would give the new commission 12 months to come up with its findings on how it could be done.
The document also laid out a number of other regulatory measures it wishes to apply to the financial services industry in the UK.
"We will reform the banking system to avoid a repeat of the financial crisis, to promote a competitive economy, to sustain the recovery and to protect and sustain jobs," the government said of its overall aims.
It added that measures including a banking levy, tackling "unacceptable bonuses" and reform the current system of financial regulation will all be implemented.
Last week, British opposition to tougher new rules on hedge funds operating in the European Union was defeated as the measures were passed in Brussels.
By Claire Archer