The experts of Global Finance magazine compiled annual rankings of the safest bank in the world. Different economic indicators are used for this purpose. The ranking of the safest financial institutions in 2020 is based on the correlation of the long-term credit ratings compiled by the leading rating agencies. It includes 500 largest banks (in terms of assets) and has the status of independent economic units.
DZ Bank (Germany) $606359 million
This is a German bank, which is consistently included in the country’s TOP-3 in terms of assets. It specializes in providing financial services to corporate clients and individuals. The bank heads the group of the same name, which includes leasing, investment, and insurance companies. РА “Standard & Poor’s” gives this bank a credit rating AA- (above-average commitment) and “Moody’s Investors Service”- Aa1 (high-level commitment).
Caisse des Dpots et Consignations (France) $207623 million
This is one of the oldest financial institutions in France, whose history started in 1816. It has the state company’s status, whose activity is associated with the management of savings funds, retirement savings, investment, higher education support, financing entrepreneurship, etc. The analysts from РА “Standard & Poor’s” and “Moody’s Investors Service” rated it AA and Aa2 ratings, which corresponds to the high-level commitment.
Caiise d’parge de l’tat (Luxembourg) $54305 million
This is the flagship of the financial market of a small European duchy. This financial establishment was founded in 1856 and had a state company’s status, acting as a commercial bank. It is included in the TOP-3 banks of Luxembourg (in terms of assets) and takes leading roles among the credit institutions with internal capital. The bank has won many international awards (including the safest bank); it has been repeatedly recognized as the country’s best bank. The analysts from “S&P” rated the financial establishment АА+ rating (high-level commitment), while “Moody’s” gave it a score of Аа2.
NRW.BANK (Germany) $175242 million
This is the bank with the status of a state company, located in the German state of North Rhine-Westphalia. The main activity of the bank is associated with directed lending and loan refinancing. It mainly works with banking and non-bank credit institutions and is involved in financing municipalities and public organizations. The bank also participates in the projects of the European Investment Bank. As of December 31, 2017, the volume of assets was $175242 million. “S&P” rated it АА- rating, and “Moody’s” – Аа1 with the “high-level commitment” status.
Nederlandse Waterschapsbank (Netherlands) $101924 million
This is one of the leading Dutch private banks, which provides funding for government bodies, local authorities, and public organizations. It operates on the market under the name “NWB Bank” and doesn’t cooperate with private clients. By law, only state and municipalities can be the shareholders of the financial institution. The analysts from “Standard & Poor’s” assigned the highest rating “ААА” (highest quality commitment) to this credit institution. This opinion was shared by “Moody’s”, who gave it a score of “Ааа”.
Nederlandse Gemeenten (Netherlands) $167932 million
This is the Dutch municipal bank, specialized in the funding of state enterprises and organizations. The bank has been working on the market since 1914; it is in the country’s TOP-5 in terms of assets. About 50% of the credit organization’s assets belong to the state, while the second half is owned by the municipalities. Two leading rating agencies assigned the highest rating to the financial institution: “Standard & Poor’s” – AAA, “Moody’s Investors Service” – Aaa with an explanation “top-quality commitment”. Fitch assigned it the AA+ level (high-quality commitment).
L-Bank (Germany) $84640 million
This is one of the largest German land banks, founded in 1998. The main shareholder of the financial institution is the state government of Baden-Württemberg. The main areas of its activity are lending to small and medium-sized businesses and supporting the housing sector and infrastructure projects. It participates in the equity financing of enterprises and different social programs. In 2017, it was included in the TOP-20 largest German banks (17th place). All rating agencies put the bank in the top-most position, which suggests high-quality solvency.
Landwirtschaftliche Rentenbank (Germany) $108711 million
This is a German bank with an authorized agent’s status for the development of the agro-industrial complex. It provides soft loans to agricultural enterprises by raising funds from the international capital markets through loans and securities issuance. It is involved in financing projects in the food industry and related sectors. The long-term liabilities of the financial institution have received the highest score from the leading РА: ААА from “S&P”, Ааа from “Moody’s” and ААА from “Fitch”.
Zurich Cantonal Bank (Switzerland) $167945 million
This is the largest Swiss cantonal bank, included in the TOP-5 leading financial institutions of the country. Structurally, it belongs to the canton of Zürich, which bears responsibility for the obligations of the ZKB. The bank owns the investment fund “ETF ZKB Gold”, involved in the investments in gold. The branches of the financial institution work in Brazil, India, Singapore, and Austria. All rating agencies stated that the bank had the highest level of commitment.
KfW (Germany) $566486 million
This is the German state bank, the main shareholding of which (80%) is owned by the German government, while the rest belongs to the country’s federal states. It was founded in 1948 as part of the implementation of the Marshall Plan. The bank heads the same name’s banking group, which satisfies the needs of borrowed funds through government bonds. The business is diversified by three main directions, including domestic and international lending. The bank received the highest solvency rating from “S&P”, “Moody’s”, and “Fitch”.
This time, the experts decided to focus not on the banks’ financial performance (assets, liabilities, profit, and other data) but on their ability to quickly and effectively respond to a changing reality.
The respondents expressed their rate of satisfaction with the work of the banks and their willingness to recommend their services.
The following criteria guided them:
- level of organizational trust
- interaction terms
- financial services
- availability and convenience of online services
- quality of consultations and services in general