Safest Places in the World to Bank Money
Countries with Good Ratings and Banks with Safe Business Practices
Jun 8, 2009
The world's financial crisis continues with huge losses, instability and uncertainty. It is wise, therefore, to take a good look at the bank where one's money is invested. Simply because the money is deposited in a money market fund or savings account in a large, traditionally safe bank does not mean it is protected.
The credit crunch and financial market turmoil due to the distressed housing market is now being felt in banks and financial institutions that were once considered to be too big and sound to fall.
International Banking or Offshore Banking
An offshore bank is a bank located outside the country of residence of the bank account holder, typically in a low tax jurisdiction that provides financial and legal advantages. They do not necessarily protect one against political or financial instability.
The World Economic Forum's Global ranking index for countries with safe banking practices is based on the opinions of executives in the industry and banks were scored between 1.0 (insolvent or in need of government aid) and 7.0 (healthy with sound balance sheets).
Not all countries are mentioned in the ratings that follow:
World's Soundest Bank System Rating:
- Canada (6.8)
- Sweden (6.7)
- Luxembourg (6.7)
- Australia (6.7)
- Denmark (6.7)
- Netherlands (6.7)
- Belgium (6.7)
- New Zealand (6.6)
- Ireland (6.6)
- Malta (6.6)
- Hong Kong(6.6)
- Finland (6.5)
- Singapore (6.5)
- Norway (6.5)
- South Africa (6.5)
- Switzerland (6.5)
- Namibia (6.5)
- Chile (6.5)
- France (6.5)
- Spain (6.5)
At the bottom of the list was Algeria in 134th place (3.9), Libya (4.0) and Argentina and East Timor (4.2).
Global Finance released a report where ratings from Moody's, Standard & Poor's and Fitch were used to determine the world's safest banks by name and this was through a comparison of the long-term credit ratings and the total assets of the 500 largest banks around the world. The top twenty of the banks listed in their report “World's Safest Banks” are as follows:
Top Twenty International Safest Banks – mid 2009
- KfW (Germany)
- Caisse des Depots et Consignations (France)
- Bank Nederlands Gemeenten (BNG)
- Landwirtschaftliche Rentenbank (Germany)
- Rabobank (Netherlands)
- Landeskreditbank Baden-Wuerttemberg-Foerderbank (Germany)
- NRW. Bank (Germany)
- BNP Paribas (France)
- Banoo Santander (Spain)
- Royal Bank of Canada (Canada)
- National Australia Bank (Australia)
- Commonwealth Bank of Australia (Australia)
- Banco Bilbao Vizcaya Argentania or BBVA (Spain)
- Toronto-Dominion Bank (Canada)
- Australia & New Zealand Banking Group (Australia)
- Westpac Banking Corporation (Australia)
- Banco Espanol de Credito S.A. (Spain)
- ASB Bank Limited (New Zealand)
- HSBC (United Kingdom)
- Credit Agricole (France)
A rating is not a recommendation to purchase, sell or hold a security, and it does not comment on market price or suitability for a particular investor.
Sources:
1. World Economic Forum Global Competitiveness Report 2008-2009
2. Global Finance Magazine, Article "The World's Safest Banks Mid-2009"
 |
 |
