Efforts by governments and regulators to strengthen the international financial system and reduce the chances of a recurrence of the global financial crisis, may spark another credit crunch in Europe as banks rush to deleverage their positions, according to Jacques de Larosière, chairman of Eurofi and a former managing director of the International Monetary Fund.

De Larosière, who is also a former governor of the Banque de France, expressed hits fears about the "unintended negative consequences"