UK prime minister David Cameron has told MPs the government will implement the recommendations brought forward by the Parliamentary Commission on Banking Standards.
The commission stated bankers should be jailed for any reckless misconduct that causes harm to everyone in the UK.
It also recommended regulators should be given more powers to force bankers to wait up to ten years for their bonuses.
Mr Cameron said he wanted to introduce strong legislation to underpin the recommendations of the "excellent" banking commission.
"We will be using that bill to take these important steps. The key thing is we have that opportunity," he told MPs when asked if he would amend the banking reform bill, which has reached the report stage in the House of Commons.
This is an important step forward to the improvement of banking regulation in the UK as the government attempts to improve the state of the sector, which has been rocked by several scandal is previous months
By Asim Shah