In recent years, more and more attention has been given to how the quality of banking services offered influences the broadly understood performance of banks. The studies published on this subject tend to focus on the practical aspects of the problem. To a much lesser degree do they consider measurability of quality or possible methods of identifying those quality improvements which contribute most to boosted financial performance. This is probably because measuring quality is such a complex task.

The paper presents a review of the most interesting methods and models of quantifying quality of service as well as its impact on financial performance, with a special focus on the banking sector. The first part of the paper deals with various definitions of quality and the key methods of its quantification. Next, the author presents different ways to measure banks' financial performance, understood as maximizing the difference between the outlays and revenue and incorporating the concept of service quality as an important factor of performance improvement. Subsequently, models of quality impact upon performance are discussed. Those provide a platform for interpreting the empirical relationships observed. Finally, the main points of the paper are summarised.