British economist and author John Kay argues in "Narrow Banking: the reform of banking legislation" that the financial services industry should be restructured to ensure that regulation serves the interests of the public.

"A competitive marketplace is one in which well run businesses earn profits through domestic and international competition, and badly run businesses go to the wall," he says.

"That is the process by which the market system promotes innovation and economic progress, and suppression of that process damages innovation and economic progress."