Co-op makes £90m provision

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The Independent Online

Co-op bank has set aside a £90m provision relating to the mis-selling of payment protection insurance, which has rattled the UK banking industry.

Analysts have estimated that the mis-selling fiasco could cost banks some £8bn in total. Lloyds has borne the brunt with a £3.2bn provision, while Barclays and RBS each took charges of about £1bn.

The PPI insurance policies were typically taken out alongside a personal loan or mortgage to cover repayments if customers fell ill or lost jobs. But the policies were sold to people who would not have been able to claim.