The governor of the Bank of England (BoE) Mark Carney has taken steps to dismiss bank concerns about new capital requirement proposals.
He said the companies need to stop refusing to follow new international rules.
Speaking to the Sydney Morning Herald, he rejected claims by banks that the standards set to be discussed by G20 members are so strict they could lead to rapid growth in the shadow banking industry.
He told the newspaper that banks carried basically no liquidity protection and they were reliant on the state to insure in the past.
"The consequence was that we had a crisis where even countries that did the right thing in advance, such as my native Canada and here in Australia, had to take extraordinary measures to support the banks," he stated.
Mr Carney explained that as the economy continues to recover, the current question is what will be done now, how it will be done and under what criteria when it comes to financial institutions.
By Tony Aynsley