{"id":82667,"date":"2015-12-18T09:55:43","date_gmt":"2015-12-18T14:55:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=82667"},"modified":"2015-12-18T06:25:35","modified_gmt":"2015-12-18T11:25:35","slug":"the-worlds-safest-banks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/12\/the-worlds-safest-banks\/","title":{"rendered":"The World\u2019s Safest Banks"},"content":{"rendered":"
December 18, 2015<\/div>
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By WallStreetDaily.com<\/u><\/a> \"How<\/p>\n

By Shelley Goldberg<\/a>, Senior Correspondent<\/em><\/p>\n

Not long ago, my colleague, Alan Gula, wrote that the U.S. banking system was the envy of the world.<\/p>\n

Is this right? Well, it all depends on how you measure banks. After all, there are many ways to peel an onion.<\/p>\n

As anyone in finance or economics knows, ranking banks is always controversial, as there are many tools to use \u2013 and it can be forever argued which of those tools holds more weight. Alan\u2019s article measured banks<\/a> based on their tangible common equity (TCE) ratios.<\/p>\n

Another tool is Global Finance\u2019s<\/em> World\u2019s Safest Banks 2015 top 50 study<\/a>.<\/p>

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In order to be named one of Global Finance\u2019s<\/em> 50 safest banks in 2015, financial institutions must hold two credit ratings of at least AA- and one no lower than A+, or an equivalent combination from among the three major international credit rating agencies (Moody\u2019s, Fitch, and Standard & Poor\u2019s).<\/p>\n

Furthermore, each qualifying institution must be among the 500 largest banks in the world by assets.<\/p>\n

Eligible banks are then scored based on their rating, with 10 points awarded for an AAA rating down to one point for a BBB- rating. If a bank is rated by only two of the agencies, an implied score for the third rating is created by taking an average of the other two scores and then deducting one point.<\/p>\n

Finally, banks that are wholly owned by other banks aren\u2019t eligible. If multiple banks score the same number, they\u2019re further ranked by asset size as of the end of 2014.\u00a0This approach underscores the strong positive correlation between a bank\u2019s high credit ratings and its size.<\/p>\n

Here are the highlights from the Global Finance<\/em> 2015 report:<\/p>\n