World’s Top 50 Safest Commercial Banks 2017

Our annual look at the safest banks in the commercial space shows Germany’s DZ bank replacing TD Bank as the world’s safest commercial bank as result of the Canadian bank’s one-notch downgrade by Moody’s in May.

The first six banks on the list are tied with 23 points each, representing two ratings of AA and one of AA-, or an equivalent configuration. DZ is the largest and therefore ranks first, in line with our methodology of ranking banks with the same score by asset size, reflecting the strong positive correlation between asset size and high ratings.

The three big Singaporean banks—DBS, Oversea-Chinese Bank and United Overseas Bank—rank second, fourth and fifth. Sweden’s Svenska Handelsbanken places third.

No commercial bank enjoys an AAA rating from any of the agencies, and only Moody’s has assigned ratings of AA+ (Aa1 in Moody’s notation). Svenska Handelsbanken and RBC are the only banks receiving a AA rating from Fitch.

Global Finance’s ranking of the world’s safest commercial banks excludes banks that are majority-owned by governments or that enjoy sponsorship from their governments or regional bodies.

European banks contribute 19 of the 50 safest commercial banks. This is fewer than the 25 that Europe contributes to the Global Top 50 rankings, but nonetheless shows that strong European banks are not primarily a result of state ownership or sponsorship.

However, the removal of those state-owned/sponsored banks—which include the nine highest-ranked banks in the global list—does open the way for some banks that do not score highly enough for inclusion in the Global Top 50. Nine US banks feature among the 50 Safest Commercial Banks, compared to only five in the global list. Five Australian banks feature in the commercial list, compared to four in the global list. One Japanese bank, Bank of Tokyo-Mitsubishi, slides into the commercial ranking in 50th place.

In contrast, China contributes no banks to the safest-commercial ranking. The two Chinese banks in the global list are both state owned, and none of the privately owned Chinese banks come close to scoring highly enough for inclusion in the 50 Safest Commercial Banks. South Korea contributes one bank to the commercial rankings, compared to three for the global ranking.

One Latin American bank scores highly enough for inclusion—Banco Santander Chile at 45th, with a score of 18.

A score of 17 is the minimum requirement for inclusion in this year’s commercial-bank rankings, equivalent to two ratings of A+ and one of A. However, a score of 17 was not in itself sufficient. Three banks scoring 17 occupy the final positions in the ranking; eleven other banks, including Banco de Chile, scored 17 points but had fewer assets. 

Our annual look at the safest banks in the commercial space shows Germany’s DZ bank replacing TD Bank as the world’s safest commercial bank as result of the Canadian bank’s one-notch downgrade by Moody’s in May.

The first six banks on the list are tied with 23 points each, representing two ratings of AA and one of AA-, or an equivalent configuration. DZ is the largest and therefore ranks first, in line with our methodology of ranking banks with the same score by asset size, reflecting the strong positive correlation between asset size and high ratings.

The three big Singaporean banks—DBS, Oversea-Chinese Bank and United Overseas Bank—rank second, fourth and fifth. Sweden’s Svenska Handelsbanken places third.

No commercial bank enjoys an AAA rating from any of the agencies, and only Moody’s has assigned ratings of AA+ (Aa1 in Moody’s notation). Svenska Handelsbanken and RBC are the only banks receiving a AA rating from Fitch.

Global Finance’s ranking of the world’s safest commercial banks excludes banks that are majority-owned by governments or that enjoy sponsorship from their governments or regional bodies.

European banks contribute 19 of the 50 safest commercial banks. This is fewer than the 25 that Europe contributes to the Global Top 50 rankings, but nonetheless shows that strong European banks are not primarily a result of state ownership or sponsorship.

However, the removal of those state-owned/sponsored banks—which include the nine highest-ranked banks in the global list—does open the way for some banks that do not score highly enough for inclusion in the Global Top 50. Nine US banks feature among the 50 Safest Commercial Banks, compared to only five in the global list. Five Australian banks feature in the commercial list, compared to four in the global list. One Japanese bank, Bank of Tokyo-Mitsubishi, slides into the commercial ranking in 50th place.

In contrast, China contributes no banks to the safest-commercial ranking. The two Chinese banks in the global list are both state owned, and none of the privately owned Chinese banks come close to scoring highly enough for inclusion in the 50 Safest Commercial Banks. South Korea contributes one bank to the commercial rankings, compared to three for the global ranking.

One Latin American bank scores highly enough for inclusion—Banco Santander Chile at 45th, with a score of 18.

A score of 17 is the minimum requirement for inclusion in this year’s commercial-bank rankings, equivalent to two ratings of A+ and one of A. However, a score of 17 was not in itself sufficient. Three banks scoring 17 occupy the final positions in the ranking; eleven other banks, including Banco de Chile, scored 17 points but had fewer assets. n