Experts have warned that lenders will attempt to recoup their losses at the expense of their customers, the Daily Mirror reports.
The newspaper noted UK adults may end up covering the payouts through increased charges and poorer service.
Andrew Hagger from moneynet.co.uk described the sums involved as "huge" and warned that banks are unlikely to take the losses lying down.
"It could be sly back-door tactics, such as not passing on the full benefit of interest rate rises to savers," he explained, adding other customers might be subjected to rising credit card or overdraft charges.
The Daily Telegraph recently reported that Sir David Walker is to look at the work carried out by the Financial Services Authority before deciding if a fresh investigation into the collapse of the Royal Bank of Scotland is required.
By Claire Archer