Proposed changes to regulation mean banks will have to charge their customers and clients a third more for their products to meet current forecasts for profitability, according to research from JP Morgan.

Analysts at JP Morgan, in a report published today, said even if banks implemented draconian changes to compensation by cutting bonuses entirely, product prices - across retail, commercial and investment banking - would still need to rise by 26% to meet return on equity projections for next year.