Sweeping global banking regulatory and industry changes are required to ensure that the current sub-prime credit crisis is not repeated and the ongoing effect eased, according to management consulting firm McKinsey and Company.

"The excess greed cannot continue and the general population are very cynical about the robustness of the system," McKinsey and Company expert principal Mark Lawrence said at a recent conference.

Lawrence said in order to repair balance sheets, banks must look to rebuild their capital base, reduce costs, strengthen risk management and capture strategic opportunities where possible.

"Institutions need to have an integration of risk across all different businesses, and create a strong risk culture. Institutions also need to have greater courage to act," he said

The creation of industry committees such as the Financial Stability Forum (FSF) and the Institute of International Finance (IIF) Committee on Market Best Practices were also instrumental in the development of global regulatory responses, Lawrence said.

Both bodies handed down reports in 2008.

"The global regulatory bodies' findings that are to be implemented over several years, will address many of the shortcomings in the industry," Lawrence said.

According to Lawrence, banks and securities firms globally have recognised 60 - 90 percent of projected losses from exposure to the US credit markets.

"However, there is a strong possibility that some securities will be revalued and some credit losses will be realised when defaults come in. There could be more losses to come," he said.