The Healthiest Banks Outside the US

We’ve come up with a rating of the World’s Safest Banks by combining data that utilizes the foreign currency debt information from Fitch, Moody’s and Standard & Poor’s.

Our methodology is based on data gathered during 2019 and shows increases in capital buffers, likely in the face of recent world health concerns.

Some the data is impacted by technological innovations or the adoption of more stringent controls on the industry to prevent bank failure.

Regulatory Measures

What is clear is that regulatory requirements instituted since the crash of 2008 have led to up ticks in overall bank stability.

It is expected that these regulatory measures will slowly have a lessened effect on bank ratings going forward.

As for the United States and North America, banks are demonstrating a continuing trend toward stability as the US economy and US financial markets have largely absorbed the negative effects of the recent 2020 pandemic.

While the US-China trade dispute has proved exceptionally disruptive, it’s the hit markets have taken from pandemic concerns to the US Gross Domestic Product which may cause GDP to drop from the 2.4% it demonstrated in 2019 to -8% for 2020.

Banks in the US and Canada are dealing with tight margins due to very low interest rates. North American banks are additionally being forced to devote considerable resources to meeting new regulatory requirements and the onslaught of digital fintech platforms.

Volcker Rule and Dodd-Frank

A number of changes to the regulatory environment have softened as elements of the Volcker Rule and amendments to the Dodd-Frank rules saw their threshold for inclusion in “special oversight” provisions rises. The rules raised the bar for institutions with assets of at least $50 billion up to include only those that hold assets of $250 billion or more. This change cut back the total number of banks covered by the Fed’s Comprehensive Capital Analysis and Review exam to just 18 during 2019 review cycle. That number was 35 banks in total during the 2018 review cycle.

Effect of USMCA

Changes to the trade between the US, Mexico and Canada have also impacted the markets as the provisions of the United States–Mexico–Canada Agreement (USMCA) were put in place earlier this year.

THE WORLD’S SAFEST BANKS

RankedCompany NameCountryFitchMoody’sS&PAssets ($ Mil.)
1KfWGermanyAAAAaaAAA556,424
2Zuercher KantonalbankSwitzerlandAAAAaaAAA172,671
3BNG BankNetherlandsAAAAaaAAA157,503
4Landwirtschaftliche RentenbankGermanyAAAAaaAAA103,113
5Landeskreditbank Baden-Wuerttemberg (L-Bank)GermanyAAAAaaAAA79,692
6Nederlandse WaterschapsbankNetherlandsNRAaaAAA86,576
7KommunalbankenNorwayNRAaaAAA48,583
8NRW.BANKGermanyAAAAa1AA—169,165
9Swedish Export Credit Corp.SwedenNRAa1AA+31,623
10Banque et Caisse d’Epargne de l’EtatFranceNRAa2AA+52,566

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