The Treasury Select Committee has branded governance at the Bank of England as “antiquated” and proposed a radical shake-up of the institution.

In a report released this week, TSC chairman Andrew Tyrie MP said governance at the bank should be strengthened to reflect its new powers in preventing future crises.

These included more oversight and making the Bank more accountable to the Government.

Mr Tyrie proposed the 12-member Court of the Bank was changed into a smaller Supervisory Board which would have the power to conduct retrospective reviews on Bank policies and conduct.

It would also have a statutory responsibility to respond to requests from Parliament for information.

This comment comes after a report last week that the Bank of England refused to give meeting minutes to the TSC.

He also pointed out it needed to be “crystal clear” who was responsible during a financial crisis.

He suggested Chancellor George Osborne should be accountable during a period of financial turbulence and be given a temporary power to direct the Bank.

Mr Tyrie said: “The Governor should be free from Government interference in the day-to-day running of the Bank but, in a crisis, lines of accountability must be much sharper.

“The Chancellor should have a specific power of direction when public money is at risk. This will place the Chancellor firmly in charge during a crisis and accountable to Parliament for decisions.”