Mr King will now chair the interest rate setting Monetary Policy Committee (MPC), the new Prudential Regulation Authority (PRA) to monitor individual banks, and the new Financial Policy Committee (FPC).

BBC: Treasury Committee

The BOE's Financial Policy Committee has also insisted prudential regulators forbid banks from meeting new higher regulatory capital requirements by reducing their loan books.

WSJ: Osborne Is Losing His Allies on All Sides

Andrew Tyrie, chairman of the Treasury Select Committee, told the BBC that Mr Carney "ticks all the boxes" but added that his committee would question him on matters such as how he will approach macro-prudential stability and what his views on quantitative easing are.

BBC: Mark Carney named new Bank of England governor

It's in effect a demand for the new macro-prudential regulator being created by the Treasury which will sit within the Bank of England - the Financial Policy Committee, of which Lord Turner is a member - to have important and unprecedented new powers to determine credit creation by banks and to determine the distribution of credit.

BBC: Bank lending 'should be controlled'