Sants said that off-balance-sheet structures would still be possible, but "probably using simpler and more understandable vehicles which investors can have greater confidence in". He also warned that bankers' pay structures had given them incentives to take short-term risks - regardless of the effects on both their own banks and the stability of the overall system.
And he hinted that the regulator could be increasing its scrutiny of possible misselling. "Investors have bought products which perhaps they shouldn't, which has allowed the market to grow larger and become less stable," he said. "Firms need to focus on not misselling - products must be appropriate."