Richard Sharp has quit as chairman of the BBC over his failure to disclose to the panel interviewing him for the job that he helped to facilitate a loan of up to £800,000 for Boris Johnson.

A KC led inquiry concluded today that the former banker, who is Jewish, breached appointment rules by neglecting to mention his role.

Sharp said the report supported his belief that the breach was "inadvertent and not material".

In a statement given before its publication, he said Adam Heppinstall KC, who led the inquiry, had concluded “that while I did breach the governance code for public appointments, he states that a breach does not necessarily invalidate an appointment."

He said he was resigning to “prioritise the interests of the BBC”.

Heppinstall said that Sharp’s involvement in the loan “gave rise to a potential perceived conflict of interest” and “a risk of a perception” that he would “not be independent from the former prime minister” as BBC chairman.

He said that Sharp’s failure to tell the panel about the loan “caused a breach of the governance code”.

Heppinstall also queried whether the appointment process was truly a “fair and open competition” as required by government rules.

Sharp said he would remain in post until the end of June while the process to appoint his successor took place.

Sharp, 67, is a Conservative donor and former banker at Goldman Sachs. He was also an adviser to Boris Johnson during his time as London mayor.

The son of Lord Sharp of Grimsdyke - formerly Eric Sharp - the BBC chair was one of three children born to parents who were members of Westminster Synagogue.

The last Jewish chairman of the BBC was Lord Michael Grade, who was in charge of the corporation between 2004 and 2006.