The plans would also allow the BoE to step in and reconstruct struggling banks where necessary.
In addition, the Conservatives would create an Office for Budget Responsibility to monitor and oversee the Treasury and state spending.
Speaking at the annual party conference in Birmingham yesterday David Cameron, leader of the Conservative party, says: “My message to Gordon Brown is this. You’ve had your boom and your reputation is now bust.”
Yvette Cooper, minister for the Treasury, has branded the Conservative banking plans as “incoherent and irresponsible”.