Yesterday (8 November), the Treasury Committee published a report in which it labelled the current system "antiquated" and out of touch with the needs of the sector in the aftermath of the global economic downturn.
It noted that changes need to be made sooner rather than later to ensure the BoE can fulfil its crucial role in preventing another period of recession, such as permitting the chancellor more power at times of crisis.
Such ideas have been warmly greeted by experts as an important step forward in the process of enhancing the country's regulatory regime.
For instance, Angela Knight, chief executive of the British Bankers' Association, told the Financial Times she "very much agrees" with the proposals, while Peter Hahn of the Cass Business School indicated they are a "big step in the right direction".
By Claire Archer