Paul Tucker has been awarded a knighthood in the New Year Honours List for his services to central banking.

The ex-deputy governor of the Bank of England, who was seen as a favourite to succeed his former boss Mervyn King as governor in 2012, lost out to Mark Carney.

Tucker was responsible for financial stability and was a major player in shaping the BoE's reaction to the financial crisis.

He has since moved to Harvard to take up an academic position at the prestigious university after being at the BoE for 33 years.

However, Tucker's knighthood could be seen as controversial in some quarters as there were claims he was involved in the Libor interest rate scandal.

These claims were vigorously denied by Tucker during a session of the Treasury Select Committee.

Women Honoured

Women have featured heavily in this year's honours list and this was also reflected within the financial world.

Alison Carnwath, chairman of Land Securities, became a Dame.

She is the only woman to chair a FTSE 100 company. She famously resigned from the board of Barclays in the wake of the Libor scandal, having voted against Bob Diamond being awarded a £2.7m ($4.46m, €3.2m) bonus.

The chairwoman of the media regulation watchdog Ofcom, Colette Bow, became a dame.

Three more women from financial services were awarded the CBE including: Jayne-Anne Gadhia, CEO of Virgin Money, Katherine Garett-Cox, chief executive of Alliance Trust and Cressida Hogg, managing partner of 3i's infrastructure business.