The head of Britain's Treasury Select Committee says more competition among banks and tougher rules are needed to restore public confidence after the Libor rigging scandal.
Andrew Tyrie said a much stronger governance framework at the Bank of England is also needed.
Higher fines for firms that fail to co-operate with regulators were required urgently.
Barclays was fined £290 million in June for fixing the inter-bank interest rate, Libor.
Mr Tyrie said:
"The committee has called for action in a number of areas, including: higher fines for firms that fail to co-operate with regulators, the need to examine gaps in the criminal law, and a much stronger governance framework at the Bank of England.
"Urgent improvements, both to the way banks are run, and the way they are regulated, is needed if public and market confidence is to be restored."