Lord Turner, the chairman of the Financial Services Authority, will ask MPs to enforce stricter controls on the largest banks in the UK when he appears in parliament today.
The finance chief will voice his concerns regarding the future of the industry as well as giving evidence to the Treasury select committee.
Lord Turner feels that the banking sector is in need of a shakeup in order to avoid another economic crisis in the future.
During a speech to the Reserve Bank of India in Mumbai last month, the head of the country's financial watchdog said that financial innovation could harm the sector.
"There does not appear to be any compelling proof that increased financial innovation over the last 30 years in the developed world has had a beneficial effect on output growth," he explained.
According to the finance chief, innovation was a reason behind the financial crisis.
He believes that to ensure damaging innovation in the future is contained, new macro-prudential tools are necessary.
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