Banker Andrew Crockett is in the running to become the next chairman of the Financial Services Authority (FSA), the UK's financial market regulator, according to a press report.

The Treasury is considering Mr Crockett as a possible successor to current FSA chairman Sir Howard Davies, who is due to step down next year, the Business newspaper reported.

Mr Crockett, who was previously seen as a strong candidate for the governorship of the Bank of England, is expected to give up his current job as general manager of the Bank for International Settlements in March.

His appointment to the FSA depends in part on whether the Treasury decides to split the body's chairmanship into two separate jobs, according to the Business.

Respected

If the chairmanship is split, the FSA's current managing director John Tiner is thought likely to take on the new role of chief executive.

Mr Crockett, who has previously worked in senior roles in the International Monetary Fund and the Bank of England, is said to be highly regarded in the City.

The new FSA chief will take over at a time when the regulator is facing criticism for failing to prevent the collapse of split-capital investment trusts and the mis-selling of endowment mortgages.

The Treasury is expected to name Sir Howard's successor early in the new year.