Andrew Bailey, chief cashier at the BoE, made the comments as part of a speech at the British Bankers Associationâs annual conference.
The UK government is disbanding current regulator, the Financial Services Authority (FSA), and establishing the Prudential Regulation Authority (PRA) in its place.
Mr Bailey said: âWe are not trying to design a regime in which no bank should ever fail â¦ it would not create the right incentives around risk taking.â
The Bankâs role will change but it will continue to collude with the financial services sector to implement âmonetary and financial stabilityâ, he explained.
Part of the main focus for the PRA is to prevent taxpayer money being used to bail-out failed financial institutions in the future.
Meanwhile, Lord Turner, chairman of the FSA, has called for reform to the financial sector to tackle âfundamental issuesâ.
He said that an overhaul of regulations within the sector must analyse âcredit supply instabilityâ to prevent a future banking crisis from occurring.
By Jim Ottewill