Banks that mistreat their customers could be fined and have assets frozen under plans to put the voluntary banking codes on to a statutory footing.

Under the moves, the role of the industry-created Banking Code Standards Board would pass to the Financial Services Authority.

The FSA, which is to consult on the changes, has much greater powers to punish banks and to force them to change their behaviour.

The current codes set out how banks should treat their customers in particular circumstances, such as closing accounts or calling in loans. There are separate codes for personal customers and business clients.

The Queen’s Speech also made reference to the Banking Bill, which is going through Parliament and will give the authorities greater powers to grapple with the credit crunch.

Under the new regime, the Bank of England will be given powers to step in as soon as a bank starts to show signs of financial distress.

It will also be able to lend secretly to struggling banks. The fear of public disclosure deterred some banks from applying for short-term finance from the Bank of England during the credit crisis.

The Bank is also being given an explicit brief to maintain financial stability, including the creation of a financial stability committee – a parallel body to its Monetary Policy Committee, which sets interest rates.

Reforms are planned for the Financial Services Compensation Scheme to enable it to pay out more quickly to savers in collapsed banks. Banks will have to make bigger, regular contributions to the FSCS instead of the piecemeal arrangement under which they are asked to contribute only when money is needed.

All of these changes to banking regulation were initially proposed in May, and draft legislation was introduced in October in the House of Commons.

The Queen’s Speech made no mention of making banks lend more. Encouraging increased lending was identified last week by Mervyn King, the Bank Governor, as the single most important challenge for the economy.

The Bill is also designed to strengthen the arrangements underpinning banknotes issued by the commercial banks in Scotland and Northern Ireland. This would mean holders of these notes would be better protected if the issuing bank going bust.

According to the Government, the Bill would ensure that the authorities had the tools to resolve problems in an effective and timely manner whilst protecting consumers.

Last night the Treasury said: “The Banking Bill will strengthen the framework for protecting bank depositors, enhance financial stability through measures to reduce the likelihood of banks getting into difficulties, and improve the tools available to resolve the situation if they do.”

As previously announced, the Bill increases the guarantee for bank savings to £50,000 from £35,000 per person per bank.

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