Claims against banks that mis-sold payment protection insurance could breach the £10bn mark.
Deutsche Bank analysts predicted claims would reach £8bn, almost twice the FSA prediction of £4.2bn. But some bankers believe the figure could soar to more than £10bn, according to the Telegraph.
The analysts said claims against Barclays and RBS could reach £1.13bn and £1bn respectively.
Lloyds Banking Group has said it will settle its outstanding PPI claims, tipping the bank into a loss of £3.47bn for the first quarter of 2011.
Lloyds chief executive António Horta-Osório said the PPI provision was "sensible, prudent and the right thing to do" and would "draw a line under the issue".
A Judicial Review at the High Court found that banks must accept compensation claims from people who were sold a PPI policy before the end of last year.
Banks have the right to appeal before 10 May.
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