Banks around the world face increases in funding costs that could cut profits and hit their customers as they look to re­finance $7,000bn-plus in short-term debt expiring in the next three years with longer-dated bonds, according to research released on Tuesday.

Institutions seeking to reduce their reliance on short-term paper will have to pay up because interest rates are likely to rise and governments will stop supporting the financial system, the study by the credit rating agency Moody’s concludes.