It is within this context that Global Finance announces the half-yearly update to its Ranking of the World’s 50 Safest Banks - the recognized standard of creditworthiness for the entire financial world since it was first introduced in 1992.
In developed markets, economic uncertainty has affected the ratings of some financial institutions, such as those in Canada. While in emerging markets, institutions have generally held their ratings and moved up the list as some developed market banks moved down.
The biggest climber on the list is Banco del Estado de Chile, up seven positions from 42 to 35, followed by Svenska Handelsbanken (up 5) and Nordea (up 4). Newcomers to this year’s list include two South Korean banks (Korea Finance Corp and Industrial Bank of Korea) and Norway’s DnB. Meanwhile, Toronto Dominion bank lost its Aaa rating from Moody’s, meaning that no private sector bank currently holds a rating of Aaa from any of the agencies.
'Counterparty risk is of prime importance to global CFOs and financial executives as economic uncertainty continues to trouble global markets', says Global Finance publisher Joseph D. Giarraputo. 'Global Finance’s Safest Banks ranking provides an independent analysis of each region’s banks that companies can use as a tool to benchmark their counterparties. The institutions that top our ranking of the Safest Banks are those that have shown their strength in times of turbulence'.
The ranking was created through an evaluation of long-term credit ratings - from Moody’s, Standard & Poor’s and Fitch Ratings - and total assets of the 500 largest banks worldwide.
This exclusive survey will be published in the April issue of Global Finance.
But here's the Top 20:
1. KfW (Germany)
2. Bank Nederlandse Gemeenten (Netherlands)
3. Zürcher Kantonalbank (Switzerland)
4. Landwirtschaftliche Rentenbank (Germany)
5. L-Bank (Germany)
6. Nederlanse Waterschapsbank (Netherlands)
7. Caisse des Dépôts et Consignations (France)
8. NRW.BANK (Germany)
9. Banque et Caisse d’Epargne de l’Etat (Luxembourg)
10. Rabobank (Netherlands)
11. TD Bank Group (Canada)
12. DBS Bank (Singapore)
13. Oversea-Chinese Banking Corp (Singapore)
14. United Overseas Bank (Singapore)
15. Royal Bank of Canada (Canada)
16. National Australia Bank (Australia)
17. Commonwealth Bank of Australia (Australia)
18. Westpac (Australia)
19. ANZ Group (Australia)
20. Nordea (Sweden)