Economic headwinds and uncertainty are prompting many banks to restructure—whether their balance sheets are growing or not.
This year, the Country Winners of the Global Finance World’s Safest Banks rankings include five new countries and 24 new winners. And three countries had two banks in a near-tie for the No. 1 spot.
With profits squeezed and fintech expanding, banks are re-evaluating their business models.
Chinese banks dominate Global Finance’s top-50 ranking for emerging markets; Brazil maintains second place despite economic pressures
The safest emerging markets banks exhibit a measure of stability that keeps them buoyant despite global recession concerns.
Given the potential for macroeconomic disruption, Global Finance’s ranking of the World’s Safest Banks is especially valuable in 2019.
With systemwide deleveraging on hold, the Chinese banking sector will resume its growth trajectory.
The key factor shaking up the rankings this year is the tightening of regulatory oversight worldwide.
Islamic finance is expanding, though its strength is built in the Gulf.
Regulatory strictures have forced European banks to shape up, with positive results for many.
The world’s biggest banks are even bigger than last year. China has the biggest; Europe has the most.
For China’s banks, growth is easier than reducing debt and bad loans.
Almost one in four countries experienced a change of their Safest Bank in 2018, as winners were rewarded for improved financial profiles, higher ratings and asset growth.
China has the world’s biggest banks, so it’s no surprise that it leads the emerging markets rankings. The rest of the BRICs are well represented, too.
Rating-agency reappraisals shake up this year’s ranking of the world’s safest banks.
Emerging markets are more vulnerable to external shocks of all kinds; the safest banks provide stability in volatile markets.
Middle East banks are generally strong, but will need to grow their books of quality loans to improve profitability.