The former head of the Financial Services Authority (FSA), Hector Sants, has said that the changes he brought to the organisation have made it the "bedrock of the new structures going forward".

Mr Sants, who currently chairs the board at Oxford University's Said Business School, told Today business presenter Simon Jack that the changes constituted the basis of the new regulatory regime and that this "should stand us in good stead"

And he warned that there "isn't enough capital yet" in the international banking system to cover all the potential losses on existing loans.

His comments come after the Bank of England Governor Sir Mervyn King told an audience in Cardiff that banks and other financial firms should stop deluding themselves and and accept that many of their loans will not be repaid.

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