Following the publication of figures by the Co-Operative Bank, ifs University College’s Henry Grunfeld Professor of Banking, Dr Peter Hahn appeared on The Today Programme, discussing some of the challenges that the retail banking industry faces and how they can be overcome.
Dr Hahn said:
""The Co-Op has losses. It's capital, which is the amount of money that's available for losses if the bank should have a problem, has increased relative to the size of the balance sheet. So it appears that the Co-Op is a safer bank today, than it was not that long ago, despite their losses.
""For Co-Op, one of the ways that it has helped itself is it has sold off some of it's risky loans, and it doesn't need to have so much of a reserve or capital as you mentioned, for that. But those risky loans often provide a higher interest rate.""
Listen to the Dr Hahn's full interview at 01:21:30 here,