Moody has given a positive outlook for the large banks, stating the sector should remain strong in the medium term. In a note on the banks, Moodys says that, despite criticism, the outlook for the British banking sector is stable.

"The top UK banks enjoy high ratings, reflecting their good financial strength, operational flexibility and positive responses to new Internet banking competition," the ratings agency says. Moody's views the large UK banks as healthy, pointing to the continued high levels of profitability, particularly when compared to other European banking markets.