The move comes after Crosby asked for his knighthood to be removed, following a highly critical report released by the Banking Standards Commission last April.

The report by the government body cited Crosby as the “architect” of the strategy that led to HBOS’ downfall.

Crosby was awarded the knighthood in 2006 after he had left HBOS, where he served as chief executive from 2001 to 2006.

The announcement in the London Gazette read:”Letters Patent dated 11 June 2013 have passed the Great Seal of the Realm cancelling and annulling the Knighthood conferred upon James Robert Crosby on the 6 December 2006 as a Knight Bachelor.”

Crosby publicly apologised for his actions last April, saying that the Banking Standards Commission’s report “made for very chastening reading.”

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“Although I stood down as CEO of HBOS in 2006, some three years before it was taken over by Lloyds, I have never sought to disassociate myself from what has happened,” Crosby said. “I am deeply sorry for what happened at HBOS.”

Crosby gave up 30% of his £580,000 HBOS pension, meaning he will lose around £174,000 each year. He also resigned as a non-executive director of Compass Group.

Lloyds took over the collapsed HBOS at the height of the financial crisis. However, the government ended up with ownership of around 40% of the new Lloyds Banking Group.

According to the report by the Banking Standards Commission, 96% of shareholder value was wiped out when HBOS collapsed, costing taxpayers £20.5bn.

Fred Goodwin, former chief executive of the Royal Bank of Scotland, was also stripped of his knighthood in 2012, during the financial crisis, after leading the bank to near-collapse in 2008.