Changes to the banking system need to ensure that the risk of financial crises in the future is minimised, according to one expert.
Chairman of the Financial Services Authority (FSA) Lord Turner stressed the importance of reforms in a speech at the annual British Bankers' Association conference today.
He commented: "One clear need is to get better at identifying emerging systemic risks - and to create tools which can act against these risks at the macro level."
Increased supervision and a number of new policies would help to safeguard the financial system, however the banking industry itself must make sure it promotes a customer-orientated service, Lord Turner added.
Strong capital and liquidity were also highlighted as key drivers of a good banking environment.
In recent news, HM Revenue & Customs announced that banks are to be consulted on a new code of practice for the industry, which aims to restructure present tax regulations.
