The global banking industry backlash against Basel III and other regulatory changes in the wake of the financial crisis is highlighted in the latest PwC sponsored  'Banana Skins report' from the Centre for the Study of Financial Innovation.Respondents to the global survey of risks facing the banking industry now put regulation at the top of the list. Regulation was ranked only sixth in the 2012 survey, and didn't make the top 10 at all in 2010 and 2008.The survey echoes the views expressed by bankers in submissions to the Financial System Inquiry, which generally argue that regulators have tipped the balance too far towards safety, at the expense of efficiency, innovation and growth.According to the CSFI report, the feeling among bankers is that "the greatest risk facing the banking industry today is the burden of new regulation."Bankers said they saw the "huge wave of regulation" that followed the banking crisis as "excessive and potentially harmful" to banks, as well as to the prospects for global economic recovery.The report said: "Although a small number of respondents saw the growth of regulation as necessary, even beneficial given the banking horrors of the last few years, the great majority felt it had gone too far and was now loading banks with unnecessary costs."Other risks rated highly by respondents included political interference, the economic environment, technology risk, profitability and the pricing of risk.Among Australian respondents the top concerns were regulation, sales and business practices, pricing of risk, the economic environment, technology risk, interest rates, political interference social media, criminality and shadow banking.Australian bankers were far more sensitive to the reputational risk that social media presented than their counterparts elsewhere.They were also more worried about the ability of borrowers to service their borrowings once interest rates start to move up again.When asked how well prepared they were to meet these challenges Australian bankers gave an average score of 3.5 (out of five), which was higher than the world average of 3.04.