The chief executive of the British bankers' Association has told an audience in the Isle of Man that changes are needed in the industry, but not fireworks.

Addressing an audience of over 200 at the Hilton Hotel, Angela Knight said the world had been moving quickly since the Lehman Brothers collapse in 2008, and the subsequent co-ordinated action by governments to stabilise the world's banking system was happening 'in a way we haven't seen for decades'.

Ms Knight said there was now a determination to make sweeping changes, commenting: 'As an industry we have to take responsibility for the future' and 'we can’t leave it to others to achieve an effective and stable system'.

She said the first stage in the process had begun, with 'more capital and better liquidity buffers to strengthen banks' foundations'.

But she warned against 'vivid and spectacular' changes and urged the industry to avoid making any 'regulatory firework displays'.