The chairman of Lloyds, Sir Win Bischoff, told the Treasury Committee yesterday that Lloyds became aware of a potential capital shortfall at the Co-operative Group in December 2012.

Following yesterday’s evidence session with the Financial Policy Committee, the chairman of the Treasury Select Committee, Andrew Tyrie MP, said: “Andrew Bailey today said that he told the Co-operative Bank’s Board that it should inform Lloyds of the regulator’s concerns, including over its capital levels, more than a year beforehand.

“Mr Bailey also told us he has evidence to suggest his requests were complied with.

“The Treasury Committee will want to look at whether the regulator’s message got through, how it was conveyed and what, if any, action was taken as a result.”