Regulatory pressure will not only have a huge impact on cost for the banking industry but will also require a “paradigm shift” in banks’ business models, according to Werner Steinmüller, head of global transaction banking at Deutsche Bank, speaking at the Sibos banking conference in Toronto on Tuesday.

Steinmüller said Deutsche Bank estimated that the cost of investment to meet regulatory changes would be in the "three-digit million euro" ballpark. In addition to cost, he said moves from regulators required banks to rethink the way they work by moving towards linking investment banking with transaction banking to increase standardisation and efficiency in operations.