A new report from JP Morgan suggests that the cost of banking services could rise if additional regulation is implemented.
Proposed changes to the way the banking sector is regulated could lead to an overall 33 per cent increase in the cost of banking services, according to JP Morgan.
Measures suggested by regulatory bodies around the world could push up the cost of products such as property development loans and other
sources of finance, with banks facing severe cuts to their profitability if they are implemented in their entirety.
The new JP Morgan report states that the rising cost of doing business could have "significant negative ramifications" on the world's economy, with European investment banks expected to be hit particularly hard.
It added: "We believe over-regulation could be just as dangerous as under-regulation. The potential cumulative impact on earnings from the proposed measures is substantial."
JP Morgan Chase was recently named as the world's most respected bank in the Barron's annual ranking of the world's 100 largest companies.
Latest News 
