Speaking ahead of the Independent Commission on Banking’s final recommendations due next month, Angela Knight said regulatory change could undermine the recovery.
She said in light of the ongoing eurozone debt crisis and stock market volatility, the focus for banks should be on the recovery, not on dealing with more regulation, the BBC reports.
“From now on, the UK’s efforts must be focused on the economic recovery,” Knight said.
“This means allowing the banks to finance the recovery first, pay back the taxpayer next, and only then turn to further regulatory change.
“If more regulation remains at the top of the list then this will only have the effect of risking the recovery which is so essential to our future.”
The commission has already recommended ring-fencing banks’ retail operations from their investment banking arms.
Last month, business secretary Vince Cable indicated banks could still be forced to separate entirely their High Street businesses from their investment divisions.
