The chief executive of Barclays Bank has been criticised after admitting that credit cards are a bad way to borrow.

Giving evidence to the Treasury select committee, Matthew Barrett said he would go elsewhere in the market if he needed to borrow money.

His comments came as MPs slammed the high rates of interest charged by lenders.

The Treasury committee said that rates charged on a Barclaycard have fallen from 24.6 per cent to 17.9 per cent since 1992 - a period during which interest rates have fallen by two thirds to just 3.5 per cent.

"I think if I had to pay more than I can get elsewhere in the market, I would consider going elsewhere," said Barrett.

"I don't borrow on credit cards because it is too expensive," he added.

The bank chief later added insult to injury when he admitted that he also advised his own children against using credit cards as a means of borrowing.

Committee member and Labour MP Jim Cousins accused the Barclays chief of "bare-faced cynicism".

"Bare-faced cynicism can sometimes be very amusing, but it is quite clear that you as a person place no credibility or belief in these nought per cent offers that your organisation is showering people with," he said.

Barrett's comments are already being compared to those of Gerald Ratner in 1991, when he claimed his Ratner Jeweller's silverware was "total crap".

The bank, however, defended his evidence. "The point he was making is that if you are borrowing a lot over a long time, cards are not the best way of doing that. Credit cards are for short-term borrowing," said a spokesman.

Committee chairman John McFall has given the banks nine months to clarify the charges made on their credit cards.

"We are not going to go away," he warned.