The US economic bail-out programme has done little to ensure that financial crises do not occur in the future, a key watchdog report has said.

While conceding that “some aspects of the financial system are more stable”, it said that a number of the bail-out’s key goals “have simply not been met”.

Most notably, banks are still too big and lending has not increased.

The $700bn (£440bn) Troubled Asset Relief Program (Tarp) was approved by Congress at the end of 2008.

It has been widely credited with playing a vital role in turning round the fortunes of the US economy, which returned to growth during the second half of last year after a long and deep recession.