LONDON – Since the financial crisis, the global banking sector has been forced to cut down on its excesses, lending more conservatively and just generally taking on less risk. But where in the world has the safest banks?
Business Insider decided to take a look into the countries around the world with the safest banks, using the World Economic Forum’s recently-released Global Competitiveness Survey, which offers a bundle of indicators to show the health of a country’s institutions.
One of those is the perceived safeness of banks.
WEF used its executive opinion survey to ask “in general, how do you perceive the soundness of banks?”
So the measure isn’t based on any objective economic or accounting measure, but rather by the perceptions of the population. The countries are ranked from 1 (banks need more money) to 7 (banks are generally sound).
The survey showed that people in the UK and US really don’t trust their banking systems after the 2008 financial crisis. The UK was ranked 59th and the US came in at 24th, below the likes of Guatemala, Panama, and Honduras.
Check out the countries with the safest banks below.
T14. Malta: 5.9 — “Capital buffers retained by local banks are among the highest in Europe, and Maltese banks have consistently returned solvency ratios that are almost double the EU average,” a recent report on the country’s financial sector said.
T14. Taiwan: 5.9 — While Taiwanese citizens are largely pretty happy with the soundness of their banks, earlier in October lender Far Eastern International Bank was subject to a hack in which $60 million was stolen.
T14. Slovakia: 5.9 — “Slovak banks have a strong capital-adequacy performance, and a stronger funding position than their regional neighbours, with domestic deposits covering a larger share of loans, making banks less reliant on external funding,” a 2015 report from the …read more
Source:: Business Insider