Bank of England Governor Mervyn King said Tuesday that U.S. government proposals to curb the size and activities of commercial banks make it clear that radical reforms are now on the table, and it is important to consider such options.

Speaking with lawmakers, King said it isn't realistic to think that a financial system could be designed that would prevent future crises from occurring. The more sensible approach is to make it resilient enough so that troubles in one section cannot bring down the rest, he said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.