Sole traders and other individuals are set to endure higher bank charges if proposed regulations in the sector are adopted.
According to a new report from JP Morgan, British banks would need to raise almost £60 billion in order not to fall foul of new rules. The proposals are intended to bolster the banks' capital positions in an effort to avoid a repeat of the recent financial crisis.
This increased cost is likely to be passed on to customers. As business banking is already paid for by firms, there is concern that much of the shortfall may be made up by private customers. This might be through monthly charges or inflated transaction costs.
Any such move would be bad news for sole traders, many of whom use their own personal bank account to conduct their business. JP Morgan estimates that the price of all banking products would have to increase by around 33 per cent to make up the shortfall.
If adopted, the regulations would be phased in. The first wave of new rules would be introduced in 2012.
