The UK’s four biggest banks were forced to reserve £21.5bn ($36bn) to pay fines and customer redress during 2013, according to academic research.
The research into the conduct costs of Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland was carried out by the London School of Economics (LSE).
Go deeper with GlobalData
LSE professor Roger McCormick said: "What do these costs tell us? Could analysis of these costs be used by banks as part of their restoring trust agenda?
"Whatever they may say now about these being legacy issues, they can’t keep saying that. These numbers need to be coming down over time."
Last year’s costs came on top of almost £25bn of conduct costs the four banks have run up since the financial crisis.
About £19bn of those costs were run up during 2012, a figure that McCormick attributed to the costs of the payment protection insurance scandal coming "home to roost".
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMcCormick is working alongside the New City Agenda (NCA), a thinktank co-chaired by Labour peer Lord McFall to analyse changes in banking culture through data.
McFall said: "The banks’ conduct costs are harming their balance sheets, it’s not good for the wider economy.
"The money that is being spent on fines could be lent to business or could rebuild their capital so that they can serve their customers better."
Related articles:
Yorkshire Building Society to repay £8.4m to 34,000 mortgage borrowers
Lloyds fined £28m over incentive schemes’ ‘serious failings’
Clydesdale and Yorkshire Bank fined £9m by regulator
