Executives at some of the world's largest banks yesterday warned the industry's business model was facing a "profound shift" as they warned against the dangers of inconsistent and excessive regulation.

Stephen Green, chairman of HSBC, warned institutions that depended on increased leverage to deliver higher returns would have to change. "That model is gone, bankrupt," he told an audience of banking executives in the City yesterday. "This is not just the end of a bubble; it's the end of the model."