Speaking to reporters ahead of a keynote speech in the City of London, UK Chancellor of the Exchequer, Alistair Darling, says he does not plan fundamental reform of the way domestic financial institutions are regulated. The Chancellor was adamant that the current regulatory system is not to blame for the credit crunch, instead pointing his finger at the bosses of financial institutions. "Too many people did not understand the risks to which they were being exposed," he said. "You've got to make sure you've got the right people there to make the right judgments.”

Mr Darling added that in future he wants to focus on improving the quality of regulators and the people on the boards of banks, arguing that the boardroom is where special attention should be. "I strongly believe that the process of learning lessons has to start in the boardroom. Bank boards must have the right people, skills and experience to manage themselves effectively… their focus must be long-term wealth creation, not short-term profits."

The existing tripartite system, which was introduced by Prime Minister Gordon Brown when he was chancellor, relies on the Financial Services Authority, the Treasury and the Bank of England to regulate financial institutions.

The Chancellor's approach is in contrast to that being taken in the US, where the administration is due to unveil sweeping changes to the financial system. President Barack Obama's government is set to announce new powers for the Federal Reserve to oversee the relationships between financial institutions. In future, the Fed will require interconnected firms to hold more capital in case of a crisis, to help avoid a repetition of events last year when the collapse of investment bank Lehman Brothers threatened to undermine the financial system.