03 Sep 2009
Business Day, Eric Johnston
National Australia Bank and Commonwealth Bank are considered to be among the
safest banks in the world, but the lenders have yet to crack the top ten in the
latest assessment of risk in the global banking industry.
The list of the safest banks, by US-based Global Finance magazine, shows the big four
Australian banks have leapt over struggling rivals to make it into the ranks of
the top 20 safest banks in the world.
Among the biggest losers on the latest list is UK giant Lloyds, previously in
the top 10 but now out of even the top 50 after its acquisition of HBOS and
subsequent government bailout. Others to disappear from the top 10 are
Swiss-based UBS and UK's Barclays Bank.
Global Finance found the banks that
kept "an iron grip on their risk exposure" before the onset of the financial
crisis have been able hold on to their rankings.
"At the same time, the big name banks that lost their safest bank ranking
during the credit crunch are still absent from the list as they struggle to
rebuild their credit standing," the magazine said.
The rankings are based on a comparison of the long-term credit ratings and
total assets of the 500 largest banks around the world. Ratings are based on the
assessment of credit agencies Moody's, Standard & Poor's and Fitch.
National Australia Bank has the highest ranking of the local banks, coming in
at number 11, one notch above Commonwealth Bank.
In Global Finance's previous top 50 assessment released in 2007, NAB sat at
number 18 and Commonwealth Bank at 19.
Other fast movers are ANZ, which is now sitting at number 15, up from 28,
followed by Westpac Bank at number 16, compared with 29 previously. Curiously,
Commonwealth Bank's New Zealand operation ASB Bank is sitting at the number 17
spot, one notch above global giant HSBC Holdings.
The top 10 safest banks are dominated by continental European lenders, with
Germany's KfW taking the number 1 spot.
France's Caisse des Depots et Consignations takes second and Bank Nederlands
Gemeenten, or BNG is ranked at number three.
The highest-ranked bank operating in Australia is Rabobank, which comes in at
number 6.
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