Chancellor George Osborne looks set to announce sweeping new powers for the Bank of England to police the financial sector and prevent another credit crisis.
In his first "Mansion House" speech to the City of London's financial elite since taking office in May, the Chancellor of the Exchequer is expected to say that ultimate responsibility for financial supervision should lie with the central bank.
This could involve the creation of a new post styled something like the "chief executive for financial regulation", equivalent perhaps to a third deputy governor, who would sit on a powerful new Financial Policy Committee.
It is thought the central bank will get new tools to control, for example, credit binges, by demanding banks hold more capital and also oversee the supervision of individual institutions.
The precise nature of the new tools, however, is likely to be the subject of much international debate and could take time to come into place.
The Financial Services Authority that currently regulates the financial sector is set to be dismantled under Osborne's plans.
