Gordon Brown insisted on Wednesday the government would extract assurances from banks on lending and executive pay as a quid pro quo for state support. But officials admitted there were strict limits on the controls the government could impose on banks’ behaviour.

On the face of it, ministers are determined to drive a hard bargain. Mr Brown told MPs that any bank seeking taxpayer support would have to “accept new conditions – there are strings attached”. They will include controls on executive remuneration, the most politically contentious element of the bail-out.