Many of the problems facing banks today stem from a long period of low interest rates, which saw consumers, borrow heavily and often beyond their means.

That was fine while interest rates stayed low, but as borrowing costs started to rise, many consumers found it difficult to keep up with their loan and mortgage payments.

Default levels jumped to records, slashing the value of investments that had been linked to the mortgages and credit card debts, and plunging the global banking system into a credit crunch and lending crisis.