The Organisation for Economic Co-operation and Development released its latest Going for Growth report Wednesday, saying that strengthening economies for the future in key areas such as jobs, competition and taxation must now replace crisis management.

According to the report, prudential banking regulation can be toughened without undermining competition. Strong supervision even appears to reduce the cost of credit for firms and households, as it helps to level the playing field, the OECD said.

The report calls this a reason why governments should resist allowing current financial sector reform proposals to be watered down.

The OECD additionally said unemployment would persist at higher levels than before the crisis while investments will be riskier as the cost of capital rises.

The recession has eroded the potential output of OECD economies over the medium term, the group said. The report estimates a permanent GDP loss of 3 percent on average across these countries.

For each OECD country, the report identifies five priority areas for reform in order to maintain decent standards of living and strengthen economic activity.

Common to many is the need for urgent action on jobs, competition and taxes. In the current economic climate, the OECD said the benefits could not only boost long-term living standards and speed up the jobs recovery but also help strengthen public finances.

"The global recession has left deep scars," said OECD Secretary-General Angel Gurría. "The only way to begin healing them is by taking effective action now to help our economies recover their lost potential."