Lord Turner, chairman of the Financial Services Authority (FSA), has insisted that the momentum for regulatory reform must be maintained, despite recent signs of economic improvement.

Turner, speaking at the Lord Mayor’s City Banquet, said that failing to implement a more robust capital and liquidity regime for banks globally could allow a similar crisis to develop in years to come.

He said the banking industry needed to restore trust in the vital role that it performs. Banks should be focusing on their core functions for the economy and society and considering whether they accept business that falls outside this. This may mean that banks will be lower return, but also lower risk, investments.

He added: “Bank investments might become more boring