LONDON (AP) — Bank of England Governor Mervyn King says international agreements requiring banks to hold more capital and a tax on bank balance sheets proposed by the British government are not enough to significantly reduce the risk embodied in giant banks.

King, speaking to the Buttonwood Gathering in New York, said that banks deemed "too big to fail" enjoy implicit government support which in turn gives banks incentives to take on greater risk.

King welcomed the higher capital ratios for banks prescribed in the Basel III agreement, but said that is insufficient to prevent another crisis.

King and some other world financial leaders have been pushing to prohibit banks from growing too large in the wake of the Lehmann Bros. collapse.