The Public Accounts Committee noted that the Treasury had managed to cut the public purse's exposure to bank guarantee schemes in the wake of the credit crunch, and was doing better at holding on to key staff.
However, the Government was still facing a £34 billion loss on shares in RBS and Lloyds, and there were doubts as to whether the department had "sufficient capacity and skills" to respond to any future banking crisis.
Plans for more job cuts and high turnover of personnel threatened its "ability to effectively control the risks it is managing on behalf of the taxpayer".
More top news
The cable car at Ciampinoi in Italy ground to a halt after high winds blew a tree over the cable deeming it unsafe.
A school has defended its decision to stop a pupil taking part in World Book Day while wearing a Fifty Shades costume.
Jessica Bamford's parents rushed her to hospital after a 'white hard substance' formed around her mouth but luckily she did not swallow it.