It is more than seven years since the height of the financial crisis, but the run of disastrous banking news during the past few weeks has revived bad memories. Profit warnings, mass job cuts, share price plunges and defensive capital raisings have abounded.

With the aftershocks of 2008 still hitting the global economy — and central banks in the US and UK shying away from normalising ultra-accommodative monetary policies — banks, formerly seen as the powerhouses of growth, are under pressure on every side. Regulation is piling up. Competitors are stealing business. And many lenders are shrinking fast. Is banking in terminal decline?

It is certainly in turmoil. Hit by challenging markets and onerous post-crisis regulation, bank profitability has been squeezed hard. Today, even JPMorgan Chase, the most profitable Wall Street bank on recent performance, generates a return on equity of just 12 per cent. That compares with the industry average of about 25 to 30 per cent pre-crisis.