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
Rev Margaret McPhee apologised after making the "huge mistake" during a choir concert for primary school children.
A dying woman in America requested in her will for her pet dog Bella to be killed, cremated and buried with her.
One of the young victims of the school massacre in Pakistan spoke to his cousin in Birmingham just hours before he was murdered.