To avoid taxpayers being required to bailout banks in future, MPs are asking for a radical reform of the banking system in the UK.
Breaking up large banks that are thought to be too big to fail should also not be ruled out, according to the treasury select committee.
The committee thinks the debate over whether to split up the major players should "remain as wide as possible".
According to the MPs, introducing living wills that would allow for an orderly failure of banks would transfer some of the risk from taxpayers to the financial sector.
The remit of the treasury committee is to observe the administration, policy and expenditure of HM Revenue & Customs, HM Treasury and other associated public bodies including the Financial Services Authority.
Around £73.5 billion was committed to Royal Bank of Scotland and Lloyds Banking Group by the government following the financial crisis. Billions have also been made available to the banking sector in loans and funding.
