The World’s Safest Banks 2018

The key factor shaking up the rankings this year is the tightening of regulatory oversight worldwide.


European banks continue to dominate our Safest Bank ratings, while this year Canadian banks crept higher in the ranking due to a sovereign upgrade. But the big driver of bank security in the new era has been regulation. Although banks have benefitted from sustained worldwide economic growth in recent years, the financial profile of many institutions improved as a direct result of the heightened regulatory environment post-financial crisis. Rules now require higher levels of bank liquidity and capitalization, with generally improving trends in asset quality across many developed markets.

Still, major challenges may arise from the planned shift to more restrictive monetary policy, potentially damaging trade wars, Brexit disruption and persistent geopolitical tensions. In this considerable uncertainty, the Global Finance annual rankings of the World’s Safest Banks provide an important measure of clarity.

The World’s Safest Banks 2018

Regulatory changes have been a catalyst for bank restructuring, and since our last ranking there have been a number of significant new mandates. Notably, the finalization of Basel III (designed to strengthen capital requirements and reduce bank leverage), the adoption of IFRS 9 (to harmonize definitions and accounting principles around financial instruments) and the implementation of recovery and resolution plans are global in scope.

Banks must address additional mandates related to consumer privacy under Europe’s General Data Protection Regulation (GDPR), and securities-trading transparency and investor protection under the revised EU Markets in Financial Instruments Directive (MiFID II). In November, the European Banking Authority released the results of its latest stress test (which applies to 70% of EU banking sector assets), detailing the capital impact of a set of adverse assumptions. The Bank of England has imposed ring-fence requirements to separate retail and consumer business from wholesale and markets-related banking. UK banks must also issue additional subordinated liabilities up to a minimum buffer requirement to protect senior creditors.

Meanwhile, in the US, elements of Dodd-Frank have eased; this mainly impacts regional and community banks. Going forward, the refinement of capital and liquidity requirements, compliance with stress tests, and ensuring robust recovery and resolution plans will continue to underpin regulatory oversight. Such mandates ultimately contribute to the resilience of the sector.

After the 2008 crisis, central banks injected significant liquidity into the financial system through highly accommodative monetary policy (quantitative easing), hiking the threat of asset bubbles and inflation. This stance has shifted. The US Federal Reserve is now well into a tightening phase; its European counterpart is expected to follow, possibly in mid-2019. While rising rates in some regions could benefit banks’ net interest margins, innovation is needed to maintain profitability. Fintech has brought fresh competition in finance, and banks must develop or acquire robust online platforms to grow their consumer business.

In this era of heightened scrutiny, with the prospect of rising interest rates that may pressure economic growth, the sector faces additional challenges. Achieving earnings growth will be particularly daunting given the considerable costs related to regulatory compliance, new technology investment and maintaining legacy systems. Moreover, robust risk management is critical to manage global risks, ensure data security and prevent cyber threats. Banks must continue to identify cost efficiencies while focusing on revenue initiatives.

We apply a straightforward approach to ranking the World’s Safest Banks, using long-term foreign-currency debt ratings from the three major international rating agencies. (Details p. 19)

Overall, the Global Top 50 banks include institutions that exhibit considerable stability. As a result, scores remain in a narrow range. The score for inclusion among the Global Top 50 was relatively unchanged at 18.5 points (versus 19 in 2017) out of a top score of 30.


As in the past, sovereign-rating changes can have a large impact on movements year-over-year. For example, the Canadian banks rose in our 2018 rankings due to an upgrade by Moody’s in July 2018 following Canada’s adoption of new bank resolution regulations. The upgrades boosted the rankings for Toronto-Dominion (11th), Royal Bank of Canada (12th), The Bank of Nova Scotia (27th), Bank of Montreal (32nd) and Canadian Imperial Bank of Commerce (33rd and a new entrant).

Methodology: Behind the Rankings

Our ratings apply to the world’s largest 500 banks by asset size. We calculate the rankings based on the long-term foreign currency ratings issued by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service. Where possible, ratings on holding companies rather than operating companies were used, and banks that are wholly owned by other banks were omitted. Within each rank set, banks are organized according to asset size based on data for the most recent annual reporting period provided by Fitch Solutions and Moody’s. Ratings are reproduced with permission from the three rating agencies, with all rights reserved. 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. All ratings in the tables were valid as of August 17, 2018.

WORLD’S SAFEST BANKS 2018 — The Global Top 50
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 KfW Germany AAA Aaa AAA 30 566,486 31-Dec-2017
2 Zuercher Kantonalbank Switzerland AAA Aaa AAA 30 167,945 31-Dec-2017
3 Landwirtschaftliche Retenbank Germany AAA Aaa AAA 30 108,711 31-Dec-2017
4 L-Bank Germany AAA Aaa AAA 30 84,640 31-Dec-2017
5 BNG Bank N.V. Netherlands AA+ Aaa AAA 29 167,932 31-Dec-2017
6 Nederlandse Waterschapsbank Netherlands NR Aaa AAA 29 101,924 30-Jun-2017
7 Kommunalbanken Norway NR Aaa AAA 29 47,738 31-Dec-2017
8 NRW.BANK Germany AAA Aa1 AA— 26 175,242 31-Dec-2017
9 Banque et Caisse d’Epargne de L’Etat Luxembourg NR Aa2 AA+ 24.5 54,305 31-Dec-2017
10 Caisse des Depots et Consignations France AA Aa2 AA 24 207,623 31-Dec-2017
11 The Toronto-Dominion Bank Canada AA— Aa1 AA— 23 1,012,760 30-Apr-2018
12 Royal Bank of Canada Canada AA Aa2 AA— 23 940,707 31-Oct-2017
13 DZ BANK Germany AA— Aa1 AA— 23 606,359 31-Dec-2017
14 DBS Bank Singapore AA— Aa1 AA— 23 387,337 31-Dec-2017
15 Ocersea-Chinese Banking Corporation Singapore AA— Aa1 AA— 23 340,370 31-Dec-2017
16 Svenska Handelsbanken Sweden AA Aa2 AA— 23 336,116 31-Dec-2017
17 United Overseas Bank Singapore AA— Aa1 AA— 23 268,287 31-Dec-2017
18 Korea Development Bank South Korea AA— Aa2 AA 23 246,231 31-Dec-2017
19 The Export-Import Bank of Korea South Korea AA— Aa2 AA 23 78,826 31-Dec-2017
20 Deutsche Apotheker- und Aerztebank Germany AA— Aa1 AA— 23 49,583 31-Dec-2017
21 Banque Cantonale Vaudoise Switzerland NR Aa2 AA 23 46,602 31-Dec-2017
22 Swedbank Sweden AA— Aa2 AA— 22 268,778 31-Dec-2017
23 Industrial Bank of Korea South Korea AA— Aa2 AA— 22 255,805 31-Dec-2017
24 SFIL France AA— Aa3 AA 22 71,010 31-Dec-2017
25 Banque Pictet & Cie France AA— Aa2 NR 21.5 29,711 31-Dec-2017
26 Commonwealth Bank of Australia Australia  AA— Aa3 AA— 21 734,723 31-Dec-2017
27 The Bank of Nova Scotia Canada AA— Aa2 A+ 21 709,899 31-Oct-2017
28 ANZ Group  Australia AA— Aa3 AA— 21 703,415 30-Sep-2017
29 Nordea Bank Sweden AA— Aa3 AA— 21 697,527 31-Dec-2017
30 Westpac Banking Corporation Australia AA— Aa3 AA— 21 667,786 30-Sep-2017
31 National Australia Bank Australia AA— Aa3 AA— 21 617,969 30-Sept-2017
32 Bank of Montreal Canada AA— Aa2 A+ 21 550,361 31-Oct-2017
33 Canadian Imperial Bank of Commerce Canada AA— Aa2 A+ 21 438,427 31-Oct-2017
34 SEB Sweden AA— Aa2 A+ 21 310,925 31-Dec-2017
35 HSBC France France AA— Aa3 AA— 21 200,935 31-Dec-2017
36 First Abu Dhabi Bank UAE AA— Aa3 AA— 21 182,156 31-Dec-2017
37 Federation des Caisses Desjardins Canada AA— Aa2 A+ 21 115,943 31-Dec-2017
38 AgriBank United States AA— Aa3 AA— 21 104,500 31-Dec-2017
39 Sparkassen-Finanzgruppe (Sparkassen) Germany A+ Aa2 NR 20 1,235,669 31-Dec-2017
40 UBS Switzerland AA— Aa3 A+ 20 939,089 31-Dec-2017
41 Rabobank Netherlands AA— Aa3 A+ 20 723,167 31-Dec-2017
42 DNB Bank Norway NR Aa2 A+ 20 326,832 31-Dec-2017
43 Hang Seng Bank Hong Kong A+ Aa3 AA— 20 189,201 31-Dec-2017
44 CoBank United States AA— NR AA— 20 129,211 31-Dec-2017
45 National Bank of Kuwait Kuwait AA— Aa3 A+ 20 86,279 31-Dec-2017
46 OG Corporate Bank Finland NR Aa3 AA— 20 165,621 31-Dec-2017
47 AgFirst United States AA— Aa3 NR 20 37,811 31-Dec-2017
48 Farm Credit Bank of Texas United States AA— Aa3 NR 20 22,837 31-Dec-2017
49 U.S. Bancorp United States AA— A1 A+ 19 462,040 31-Dec-2017
50 Bank of Taiwan Taiwan NR Aa3 A+ 18.5 165,621 31-Dec-2017

Top 10 Safest Banks by Region — North America
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 TD Bank Canada AA— Aa1 AA— 23 1,012,760 30-Apr-2018
2 Royal Bank of Canada Canada AA Aa2 AA— 23 940,707 31-Oct-2017
3 The Bank of Nova Scotia Canada AA Aa2 AA— 21 709,899 31-Oct-2017
4 Bank of Montreal Canada AA— Aa2 A+ 21 550,361 31-Oct-2017
5 Canadian Imperial Bank of Commerce Canada AA— Aa2 A+ 21 438,437 31-Oct-2017
6 Federation des Caisses Desjardins Canada AA— Aa2 A+ 21 115,943 31-Dec-2017
7 AgriBank United States AA— Aa3 AA— 21 104,500 31-Dec-2017
8 CoBank United States AA— NR AA— 20 129,211 31-Dec-2017
9 AgFirst United States AA— Aa3 NR 20 37,811 31-Dec-2017
10 Farm Credit Bank of Texas United States AA— Aa3 NR 20 22,837 31-Dec-2017

Top 10 Safest Banks by Region — Latin America
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 Banco del Estamdo de Chile Chile A A1 A+ 17 61,588 31-Dec-2017
2 Banco Santander Chile Chile A A1 A 16 58,229 31-Dec-2017
3 Banco de Chile Chile NR A1 A 16 53,374 31-Dec-2017
4 Banco de Credotp e Onversiones Chile A A2 A 15 55,075 31-Dec-2017
5 HSBC Mexico Mexico A Baa1 BBB+ 11 36,028 31-Dec-2017
6 Scotiabank Peru Peru A— A3 BBB+ 11 18,762 31-Dec-2017
7 Banco Mercantil del Norte Mexico BBB+ A3 BBB+ 10 53,727 31-Dec-2017
8 Banobras Mexixo BBB+ A3 BBB+ 10 38,762 31-Dec-2017
9 Nacional Financiera Mexico BBB+ A3 BBB+ 10 26,254 31-Dec-2017
10 Banco Nacional de Comercio Exterior Mexico BBB+ A3 BBB+ 10 21,808 31-Dec-2017

Top 10 Safest Banks by Region — Western Europe
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 KfW Germany AAA Aaa AAA 30 566,486 31-Dec-2017
2 Zuercher Kantonalbank Switzerland AAA Aaa AAA 30 167,945 31-Dec-2017
3 Landwirtschaftliche Rentenbank Germany AAA Aaa AAA 30 108,711 31-Dec-2017
4 L-Bank Germany AAA Aaa AAA 30 84,640 31-Dec-2017
5 Bank Nederlandse Gemeenten Netherlands AA+ Aaa AAA 29 167,932 31-Dec-2017
6 Nederlandse Waterschapsbank Netherlands NR Aaa AAA 29 101,924 30-Jun-2017
7 Kommunalbanken Norway NR Aaa AAA 29 47,738 31-Dec-2017
8 NRW.BANK Germany AAA Aa1 AA— 26 175,242 31-Dec-2017
9 Banque et Caisse d’Epargne de L’Etat Luxembourg NR Aa2 AA+ 24.5 54,305 31-Dec-2017
10 Caisse des Depots et Consignations France AA Aa2 AA 24 207,623 31-Dec-2017

Top 10 Safest Banks by Region — Central, Eastern Europe and Former Soviet Union
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 Ceska Sporitenlna Czech Republic A— A2 A 14 62,431 31-Dec-2017
2 Komercni Banka Czech Republic A— A2 A 14 47,158 31-Dec-2017
3 ING Bank Slaski Poland A A2 NR 14 36,197 31-Dec-2017
4 Bank Pekao Poland A— A2 BBB+ 12 53,275 31-Dec-2017
5 Bank Zachodni WBK Poland BBB+ A3 NR 9.5 43,856 31-Dec-2017
6 mBank Poland BBB Baa1 BBB+ 8 37,751 31-Dec-2017
7 Banca Comerciala Romana Romania BBB+ Baa3 NR 5 18,169 31-Dec-2017
8 BRD-Groupe Societe Generale  Romania BBB+ Baa3 NR 5 14,070 31-Dec-2017
9 Vnesheconombank Russian Federation BBB— NR BBB— 2 58,611 31-Dec-2017
10 OTP Bank Hungary NR Baa3 BBB— 2 51,059 31-Dec-2017

Top 10 Safest Banks by Region — Asia
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 DBS Bank Singapore AA— Aa1 AA— 23 387,337 31-Dec-2017
2 Oversea-Chinese Banking Corporation Singapore AA— Aa1 AA— 23 340,370 31-Dec-2017
3 United Overseas Bank Singapore AA— Aa1 AA— 23 268,287 31-Dec-2017
4 Korea Development Bank South Korea AA— Aa2 AA 23 246,231 31-Dec-2017
5 The Export-Import Bank of Korea South Korea AA— Aa2 AA 23 78,826 31-Dec-2017
6 Industrial Bank of Korea South Korea AA— Aa2 AA— 22 255,805 31-Dec-2017
7 Hang Seng Bank Hong Kong A+ Aa3 AA— 20 189,201 31-Dec-2017
8 Bank of Taiwan Taiwan NR Aa3 A+ 18.5 165,621 31-Dec-2017
9 China Development Bank China A+ A1 A+ 18 2,450,812 31-Dec-2017
10 Agricultural Development Bank of China China A+ A1 A+ 18 808,118 31-Dec-2017

Top 10 Safest Banks by Region — Middle East
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 First Abu Dhabi Bank UAE AA— Aa3 AA— 21 182,156 31-Dec-2017
2 National Bank of Kuwait Kuwait AA— Aa3 A+ 20 86,279 31-Dec-2017
3 Qatar National Bank Qatar A+ Aa3 A 18 222,824 31-Dec-2017
4 Abu Dhabi Commercial Bank UAE A+ A1 A 17 72,159 31-Dec-2017
5 Kuwait Finance House Kuwait A+ A1 NR 17 57,524 31-Dec-2017
6 Unition National Bank UAE A+ A1 NR 17 29,277 31-Dec-2017
7 Al Hilal Bank UAE A+ A1 NR 16.5 12,195 31-Dec-2017
8 Abu Dhabi Islamic Bank UAE A+ A2 NR 15.5 33,568 31-Dec-2017
9 Al Ahli Bank of Kuwait Kuwait A+ A2 NR 15.5 14,455 31-Dec-2017
10 Ahli United Bank Kuwait A+ A2 NR 15.5 12,148 31-Dec-2017

Top 10 Safest Banks by Region — Australasia
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 Commonwealth Bank of Australia Australia AA— Aa3 AA— 21 734,723 31-Dec-2017
2 ANZ Group Australia AA— Aa3 AA— 21 703,415 30-Sep-2017
3 Westpac Banking Corporation Australia AA— Aa3 AA— 21 667,786 30-Sep-2017
4 National Australia Bank Australia AA— Aa3 AA— 21 617,969 30-Sep-2017
5 Suncorp-Metway Australia A+ A1 A+ 18 48,782 30-Jun-2017
6 Kiwibank New Zealand AA— A1 A 18 15,103 30-Jun-2017
7 AMP Bank. Australia NR A2 A 14 115,306 31-Dec-2017
8 Bendigo and Adelaide Bank Australia A— A3 BBB+ 11 54,931 30-Jun-2017
9 Bank of Queensland Australia A— A3 BBB+ 11 40,799 31-Aug-2017
10 Macquarie Group Australia A— A3 BBB 10 146,651 31-Mar-2018

Top 10 Safest Banks by Region — Africa
Rank Company Name Country Fitch Moody’s S&P Total Score Assets ($ Mil.) Statement Date
1 Standard Bank of South Africa South Africa BB+ Baa3 NR —1 144,463 30-Jun-2018
2 Absa Bank South Africa BB+ Baa3 NR —2 80,126 31-Dec-2017
3 FirstRand Bank South Africa BB+ Baa3 BB —2 82,844 30-Jun-2017
4 NedBank South Africa BB+ Baa3 BB —2 73,284 31-Dec-2017
5 Investec Bank South Africa BB+ Baa3 BB —2 52,048 31-Mar-2018
6 BMCE Bank Morocco BB+ Ba1 NR —4 33,509 31-Dec-2017
7 Attijariwafa Bank Morocco BB+ Ba2 BB —5 50,867 31-Dec-2017
8 Groupe Banque Centrale Populaire Morocco NR Ba2 BB+ —5.5 40,036 31-Dec-2017
9 Zenith Bank Nigeria B+ B2 B —14 15,434 31-Dec-2017
10 Guaranty Trust Bank Nigeria B+ B3 B —15 10,969 31-Dec-2017

Asset figures from Fitch, Moody’s, and company reports. Ratings valid as of Aug. 17, 2018.

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