Stephen Green, Chairman of HSBC Holdings, made the comments in light of Northern Rock's demise during the credit crunch.
"The lesson from the credit crisis is that supervision by a national regulator is not enough," said Mr Green.
Mr Green does not support the idea of an internationally wide body that would regulate banks instead he favours effective communication and directives within the industry.
"I don't think there is a need for special new law on banks. I think it is enough that the regulators adopt common policy standards and talk periodically to each other about big banks," added Mr Green.
A recent internal review by the FSA revealed an insufficient level of supervision of Northern Rock's high risk borrowing strategy in the changing credit climate.