An influential UK parliamentary body has called on the government to hand the Prudential Regulatory Authority, which is set to replace the Financial Services Authority next year as a key UK financial regulator, an explicit legislative mandate to approve major bank mergers and acquisitions.

The Treasury Committee, which is led by chairman Andrew Tyrie MP, on Friday recommended the government "include an explicit requirement for the Prudential Regulatory Authority to approve major bank acquisitions and mergers in forthcoming legislation".