The Financial Services Authority's chairman has told British banks that society still needs assurance a financial collapse could never happen again and that there will be more regulation ahead.
Adair Turner also told The Sunday Telegraph in an interview the finance sector still had to rectify problems that created the financial crisis, and he wanted to see a new push on regulation of the shadow banking sector.
"I think the industry needs to recognise that society wants to be assured that measures that have been taken are robust enough to prevent this terrible crisis ever happening again," he said.
"There are still important elements of the prudential regime to put in place, such as shadow banking: we have to do more work and the industry has got to accept that."
Turner also said threats that London's banks would move to Singapore or Hong Kong because of over-regulation in Britain were a "fantasy".