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
A pig that was saved from the slaughterhouse now spends her days creating artworks that sells for up to $2,000.
The formal Brexit process may have begun today - but experts say it may take up to six years to strike a new trade deal with the EU.
International trade lawyer Miriam Gonzalez Durantez says Brexit negotiators need a "360 degree view" to secure a "constructive" deal.