Darling says banks should be risk regulated

LONDON (Reuters) - The rules governing how banks behave should be based on risk, Chancellor Alistair Darling said in an interview published on Monday.

Darling told the Daily Telegraph in comments published on its website that there was a "collective responsibility" at the heart of the financial crisis.

"There are some very hard questions to be asked about the regulatory model we have operated for the last few years," he said.

"The model of us saying to them (the banks), You say it's OK to us and we'll go along with it, has failed. You should regulate according to risk ... financial services have to be properly run and supervised."

(Reporting by Matt Falloon; Editing by Leslie Adler)