“The British government will back proposals to threaten bankers with prison, after promising to speedily implement a review into the failings of the British banking system, the prime minister said on Wednesday.

“David Cameron, UK prime minister, told the Commons on Wednesday lunchtime that he would support criminal penalties for bankers and control of bonuses at state-backed banks.

“He praised the 571-page parliamentary review, saying it was an “excellent report” from the inquiry which he stressed had been commissioned by the government.

“He also criticised the last government for presiding over “boom and bust” and doing “absolutely nothing” to shore up financial regulation.

“Earlier, Greg Clark, financial secretary to the Treasury, promised to implement the report’s proposals “at a pace” and to respond in full within a month.”