The historic steps that the Federal Reserve and Treasury have taken over the past weeks are just the start to resolving the credit crisis, says Fed Chairman Ben Bernanke.

On top of the $700 billion bailout, Bernanke says that the central bank must institute long-term regulatory reforms that will allow it to respond better to future economic challenges.

"The events of the past year or two have highlighted regulatory gaps and deficiencies that we must address to improve the structure of our markets and the resiliency of our economy," Bernanke wrote in The Wall Street Journal.

"As we recover from the current crisis, it will be important to address these issues as soon as possible, to develop a regulatory structure that will better respond to future economic challenges."

Bernanke said the government's $700 billion bailout "will allow us to restore more normal market functioning, and encourage private capital to further support the reinvigoration of financial markets."

He also commended the G7 leaders for the initiatives they've taken in their respective countries to boost market confidence and unfreeze credit and money markets.

In a series of announcements, central bank leaders abroad pledged essentially unlimited money to back their own hobbled financial markets.

Industry experts agree that the U.S. government’s plan to buy bank equity stakes worth up to $250 million will help put the domestic bank sector back on track.

"These programs will mitigate further erosion of the economy," Daniel Alpert, managing director of Westwood Capital, wrote in a note to clients.