An industry group representing the world’s largest financial institutions has said bondholders and shareholders should bear the cost of future bank failures, in its clearest guidance so far on the "too big to fail" debate.

The Institute of International Finance, which counts Deutsche Bank, Citigroup, Credit Suisse, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and UBS among its members, released a report backing an international system of "bail-ins" - where regulators step in to restructure an ailing bank and allow it to be wound down quickly and efficiently.