Former HBOS chief executive Sir James Crosby has asked for his knighthood to be removed.
He will also forgo 30% of his pension following last week's critical report into the bank's collapse. Sir James served as chief executive at HBOS between 2001 and 2006.
In the Banking Standards Commission report, Sir James was described as one of the men behind HBOS' downfall.
His request will now be considered by a Whitehall honours committee.
Sir James said that the banking report "made for very chastening reading".
He added: "Although I stood down as CEO of HBOS in 2006, some three years before it was taken over by Lloyds, I have never sought to disassociate myself from what has happened.
"I would therefore like to repeat today what I said when I appeared in public before the commission in December; namely that I am deeply sorry for what happened at HBOS and the ensuing consequences for former colleagues, shareholders, taxpayers and society in general.
"Shortly after I left HBOS, I received the enormous honour of a knighthood in recognition of my own - and many other people's - contribution to the creation of a company which was then widely regarded as a great success. In view of what has happened subsequently to HBOS, I believe that it is right that I should now ask the appropriate authorities to take the necessary steps for its removal."
He said that during the course of his 30-year career, including 12 years at Halifax and HBOS, he had "both contributed to and built up a substantial pension entitlement".
Sir James said he had decided to forgo 30% of his gross pension entitlement payable to him during the rest of his lifetime. His current annual pension payment amounts to about £580,000 a year.
"I will be discussing how this reduction is implemented, and whether the amount waived should go to support good causes, or benefit shareholders, with the pension scheme's employer and trustees."
Following the banking standards report, Sir James, who served as chief executive at HBOS between 2001 and 2006, resigned from an advisory position he held at London-based private equity firm Bridgepoint.
He now says he will also stand down from his voluntary position as a trustee of Cancer Research UK.
Last week the banking standards expressed frustration that City regulators had "taken no steps" to consider banning Sir James, and two further former HBOS executives Andy Hornby and Lord Stevenson , from further involvement in financial services.
And it said financial regulators should consider banning three top HBOS bankers from senior roles in the financial sector.
Some are born great, some achieve greatness and some have greatness thrust upon them.
The rest of us are a bit crap.