George Osborne, U.K. Chancellor of the Exchequer, has supported tougher rules for the banking industry. Some of the actions he backs include a legislation to detain reckless bankers and another that provide regulators the power to delay bonuses for as long as ten years.

In its response to the recommendations of the Parliamentary Commission on Banking Standards, the government said today it plans to implement the main findings, with new laws if needed.

Osborne said in the statement, "The government is determined to raise standards across the banking industry to create a stronger and safer banking system. Cultural reform in the banking sector marks the next step in the government's plan to move the whole sector from rescue to recovery and ensure that U.K. banks demonstrate the highest standards, and are able to support business and drive economic growth."

Osborne wants to introduce legislation this year. The new rulings will make "reckless" management of lenders a criminal offense, meaning managers of firms that fail could very well face jail time.