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The financial system needs to be reformed to meet the needs of consumers and prevent the current crisis from ever happening again, a report has said.
Think tank the Financial Inclusion Centre called for greater international and domestic regulation, more accountability and the creation of utility banks with public interest objectives.
The group, which was commissioned to carry out the research on behalf of union Unite, said the global nature of financial markets meant a national approach to regulation could no longer work.
Instead it called for a new International Financial Stability Agency to be set up to help prevent global financial crises.
On a national level, it said at least a third of board members at the Financial Services Authority and a third of the members of the Court of the Bank of England should be public interest representatives.
Banks should also be asked to introduce public interest representatives on to their boards.
The group added that new measures were also needed to deal with remuneration policies that created conflicts of interest and encouraged reckless short-term behaviour.
Derek Simpson, Unite joint general secretary, said: "The report ... must be considered by the Government and financial regulator in order to ensure that this important sector of our economy is able to emerge from the current crisis and is strong enough to compete in a global environment."
Mick McAteer, director of the Financial Inclusion Centre, said: "We are in a new era of uncertainty caused by weak regulation and the reckless behaviour of financial institutions that has put at risk the savings, investments, pensions and jobs of millions of UK citizens.
"But out of adversity comes opportunity. The report sets out a series of radical, but pragmatic and necessary measures to reform the financial system so it meets the need of society."
Think tank the Financial Inclusion Centre called for greater international and domestic regulation, more accountability and the creation of utility banks with public interest objectives.
The group, which was commissioned to carry out the research on behalf of union Unite, said the global nature of financial markets meant a national approach to regulation could no longer work.
Instead it called for a new International Financial Stability Agency to be set up to help prevent global financial crises.
On a national level, it said at least a third of board members at the Financial Services Authority and a third of the members of the Court of the Bank of England should be public interest representatives.
Banks should also be asked to introduce public interest representatives on to their boards.
The group added that new measures were also needed to deal with remuneration policies that created conflicts of interest and encouraged reckless short-term behaviour.
Derek Simpson, Unite joint general secretary, said: "The report ... must be considered by the Government and financial regulator in order to ensure that this important sector of our economy is able to emerge from the current crisis and is strong enough to compete in a global environment."
Mick McAteer, director of the Financial Inclusion Centre, said: "We are in a new era of uncertainty caused by weak regulation and the reckless behaviour of financial institutions that has put at risk the savings, investments, pensions and jobs of millions of UK citizens.
"But out of adversity comes opportunity. The report sets out a series of radical, but pragmatic and necessary measures to reform the financial system so it meets the need of society."
