The Financial Services Authority (FSA) has told Britain's banks that they must spend almost £1bn upgrading computer systems so that customers can recover their money if a bank collapses.

The FSA has called for a five-year investment of at least £892m to ensure that individuals and business owners can access a list of their deposits within 48 hours of a financial institution failing.

This would mean that customers can access their savings within seven days of a bank failing, and the FSA hopes the measure will improve confidence in UK banks.

The proposal is being met with resistance from some banks who wish to decrease expenditure and preserve their capital.