Are bad loans holding banks back? An exclusive look at Lafferty's Bank Quality Ratings.

Sep 19, 2016, 05:44 AM

A new set of European bank rankings has found there isn't a single EU bank which qualifies for a five star rating. The Bank Quality Ratings from industry consultancy Lafferty rank the 100 largest lenders for things like profitability and customer service.

In a study disclosed exclusively to Share Radio's Morning Money, it seems only two smaller UK banks get four stars: Aldermore and Close Brothers. Most of the larger ones only get two.

Bad loans remain a big issue holding banks back. Yet it seems the real stumbling block is that the larger universal banks with investment and retail divisions, like Barclays, tend to focus on sales targets, rather than meeting customers financial needs.

Aongus Buckley is a senior analyst at Lafferty and discussed the results further with Nigel Cassidy.