Banks are focused on the current crisis but they should keep their eyes on another looming problem: a regulatory backlash that is already under way in some countries. It will be costly and will have unintended consequences.

The political dimension is broadening as the banking crisis feeds into the real economy. The US could already be in recession, the UK is slowing down and European Union growth forecasts have been scaled back. As people see the value of their homes fall, find banks less willing to lend money and feel the effect of rising inflation allied to average wage growth that has already not kept pace during the boom years, the calls by bankers and some regulators for measured reactions may not be listened to.