World’s Safest Banks 2023–Country Winners

To earn a safest bank distinction in Global Finance’s 2023 Country Winners awards, an institution must differentiate itself from its in-country peers by prudently managing its franchises amid a volatile post-pandemic global economy. In addition to helping clients weather global inflationary pressures and sometimes aggressive central bank policy responses, trade and supply chain constraints, and the outlook for declining GDP growth in many parts of the world, these banks face unique challenges in their respective countries and markets.

This year, we recognize 17 new winners across the 110 countries represented in the Safest Country Winners category. While some of these changes show up for developed countries, many are from the emerging and frontier markets segments. Latin America posted five of the new winners.

Multiple factors contribute to these shifts, of which changes in ratings are the most prominent at both the bank and the sovereign level. S&P lowered Argentina’s sovereign debt rating, and subsequently the ratings of the nation’s banks, citing risks related to “pronounced economic imbalances and policy uncertainties.” Banco de Galicia y Buenos Aires emerges as the new winner, unseating Banco Patagonia. While both entities were downgraded, Banco de Galicia benefits from a Moody’s rating that boosts its score.

A Moody’s downgrade of incumbent Banco del Estado de Chile allows Scotiabank Chile, with its comparatively stable ratings profile, to emerge as the winner in Chile. In El Salvador, Banco Davivienda Salvadoreno benefits from a Fitch upgrade to outscore the previous winner, Banco Agricola. Equity Banque Commerciale du Congo notched an upgrade from Moody’s and now outscores last year’s winner, Rawbank.

In some cases, changes in ratings coverage were the key to winning. Iceland’s Arion Bank benefits from Moody’s initiating coverage last year, which raises the bank’s score enough to unseat Landsbankinn for the Safest Bank title. Meanwhile, Bolivia’s Banco Union is no longer a rated entity, allowing Banco Mercantil Santa Cruz to take the top spot in that Latin American country.

Our methodology dictates that banks wholly owned by a parent company are ineligible for consideration. In Costa Rica this year, Banco Davivienda replaces BAC Credomatic, which is now a wholly owned subsidiary. Banco Davivienda’s score also benefits from a Fitch upgrade. In Hungary, MFB Hungarian Development Bank takes the top spot, the previous winner, Erste Bank Hungary, being now 100% owned by parent Erste Group Bank. And in Italy, Intesa Sanpaolo replaces FCA Bank, which is now a wholly owned subsidiary of Credit Agricole.

Year-over-year changes in rank attributable to this important ownership feature frequently result from acquisitions and corporate restructurings. In Oman, incumbent HSBC Bank Oman was acquired by Sohar International and its ratings were withdrawn and the bank was dissolved, paving the way for Bank Muscat to take the Safest Bank title there.

The size of a bank’s balance sheet is another key methodological element, serving as a tiebreaker in cases where banks compile equal scores. This enables Advanced Bank of Asia to edge out previous winner ACLEDA Bank in Cambodia and Bank of Georgia to beat TBC Bank, last year’s winner in the Caucasian republic. Meanwhile in Ghana, Guaranty Trust Bank wins over former title holder United Bank for Africa. Eurobank replaces National Bank of Greece, and National Bank of Pakistan unseats Habib Bank.    

To be eligible for Global Finance’s Safest Banks By Country awards, institutions must rank among the world’s largest 1,000 banks by assets and carry at least one long-term foreign currency deposit or debt rating from one of the three major rating agencies. Wholly owned subsidiaries are ineligible. To identify the safest bank in each country, we have adopted broader criteria than for our global rankings, which require a position among the largest 500 banks and a rating by at least two agencies.