Lloyds Banking Group's share price opened with a dive this morning, following news that the bank had lost its place amongst the world's 50 safest banks.
Global Finance Magazine's annual list of the world's safest banks revealed yesterday that Lloyds Banking Group no longer appears amongst the top 50 – the bank was in sixth place last year.
As a result, shares in Lloyds Banking Group fell by almost five per cent upon opening this morning, putting an end to the bank's recent rally.
In the last year, Lloyds has merged with HBOS, inheriting billions in bad debts and causing the bank to become 43 per cent taxpayer owned. However, other banks, including Royal Bank of Scotland, have also fallen at the hands of the turbulent economic climate.
In fact, the only UK banks to appear in the list this year were HSBC and Nationwide, which is testament to the climate the UK has faced. Commenting on the results, Global Finance publisher, Joseph D. Giarraputo said:
"It's been a bumpy two years for the rating agencies and many of the banks they evaluate.
"More than ever customers all around the world are viewing long term creditworthiness as the key feature of the banks with which they do business."
Lloyds has so far cut more than 7,000 jobs as a result of its decision to take on HBOS, and it emerged in the Daily Mail at the weekend that the bank is now considering closing 550 of its Halifax branches as it continues to navigate through the banking crisis.
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