CO-OP Bank, which came close to collapse last year, has appointed a new chairman as the lender attempts to rebuild its reputation.

Dennis Holt replaces former Bradford & Bingley boss Richard Pym who stood down at the beginning of this month after just over a year in the role.

Mr Holt, who first joined the bank as its senior independent director in February, has acted as interim chairman since the departure of Mr Pym.

The appointment comes as the bank steps up its recovery after a shortfall of £1.5 billion was discovered in its balance sheet, causing the collapse of its bid to buy more than 600 branches from Lloyds Banking Group.

A report last week by the Treasury Select Committee into the failed Lloyds deal said former chairman, ex-Bradford councillor Paul Flowers, who led the lender for four years until 2013, lacked any of the experience to act as chairman of a bank.

During a previous appearance before the Treasury committee, Mr Flowers stumbled over the basic facts and figures relating to the ailing bank.

By contrast Mr Holt has 43 years experience in banking and insurance, including spells as deputy chairman of Bank of Ireland and chairman of Liverpool Victoria.