China continues to search for antidotes to an ailing economy and the deterioration of its real estate market, and the banking sector continues to expand. GDP growth rose to 5.2% in 2023, up from 3% in 2022, but it is now forecast by the International Monetary Fund (IMF) to fall to 4.8% in 2024 and further, to 4.5%, the following year. Meanwhile, China has contributed to balance sheet growth for each of the institutions that earned a place in our ranking of the biggest emerging market banks.

China claims the top 15 spots and 25 entries overall out of 50, with an average increase in assets of 7%; together, the country accounts for 90% of aggregate assets represented in our ranking.

India has posted high GDP growth in recent years, including 8.2% last year, according to the IMF, and the five Indian banks that earned a place in our top 50 have expanded strongly as well. In 2023—our year-end for these rankings—HDFC Bank, the country’s largest private sector bank, completed its merger with India’s largest housing finance company, like-named HDFC Ltd., boosting the bank’s assets by 50% in the country’s largest M&A deal to date. The remaining four Indian banks in our ranking averaged 7.5% balance sheet expansion during 2023.

While South Korea’s economy has rebounded this year, GDP slid to a three-year low of 1.4% in 2023, likely contributing to asset growth under 1% for all seven of the Korean banks represented in our ranking.

A broader picture emerges when looking at the 50 biggest emerging market banks without the dominant Chinese institutions. This view broadens the global scope of the top 20 alone, where China holds 19 spots. The expanded view adds three more Indian banks, for a total of eight, as well as representions from Africa, Latin America and more from the Middle East.

Global Finance’s 2024 ranking of the world’s 50 largest banks highlights institutions that have built powerful franchises in their respective markets, with extensive rosters of corporate, commercial, and retail clients. Their sheer size makes them industry leaders, and by leveraging thier diverse banking platforms they have grown their balance sheets.

Additionally, banks that earned a place in our 2024 ranking are highly influential in shaping the industry’s best practices, with the deep resources needed to attract top talent and develop innovative products and services.

Balance sheets for the top 50 expanded 4% in 2023, giving them aggregate assets of $92.8 trillion: a turnaround following a 2% decline for last year’s winners.

Chinese banks have consistently ranked as the world’s largest; this year, they hold the top four positions in our ranking, with Industrial and Commercial Bank of China on top at more than $6.2 trillion in assets. The top four banks averaged 11% asset growth and the 15 Chinese banks in the top 50 posted an average 6% year-over-year (YoY) increase.

In Japan, the three banks included in our ranking—Mitsubishi UFJ Financial Group, Sumitomo Mitsui, and Mizuho—all suffered an average 5% balance sheet contraction in 2023, which could be seen as a reflection of the country’s difficulty sustaining economic growth.

Euro area economies had similar challenges, with an average of less than 1% GDP growth in 2023, according to the IMF. The 14 eurozone banks in our top 50 averaged a 1% increase in assets. YoY changes include new entrants Banque Federative du Credit Mutuel at No. 47 and State Bank of India at No. 49, replacing Norinchukin Bank and CaixaBank.

The common thread running through this year’s country winners is the resilience they demonstrated during a period of higher interest rates linked to central bank efforts to tame rising inflation. Now, inflation is declining globally and central banks have begun to ease rates as their focus shifts to sustaining economic growth.

That means banks face a different set of challenges and opportunities. The pace of rate cuts is particularly important for those in developing and frontier economies, which stand to gain from an interest rate stance that favors growth following a prolonged period of elevated rates and sluggish GDP. During that stretch, sovereign rating downgrades, particularly in developing and frontier countries, were often the catalyst for follow-on ratings action on their respective banking systems.

Most of our 16 new country winners were in these developing markets. The overall picture was mixed; however, many jurisdictions saw positive developments, including rating upgrades that benefited their banks.

Negative credit trends and the withdrawal of bank ratings resulted in new winners in three Latin American markets. Following Ecuador’s sovereign debt downgrade last year, due to its deteriorating funding and liquidity profile, Fitch downgraded several Ecuadoran banks as well. However, they maintained Produbanco’s rating, confirming the latter as this year’s winner.

In Bolivia, S&P’s withdrew the remaining rating of incumbent Banco Mercantil Santa Cruz, allowing Banco de Credito to claim the top spot. Similarly in Venezuela, Fitch withdrew its rating of last year’s winner, Mercantil Banco Universal, leaving no rated candidates in that country.

Western Europe sees three new winners this year. Hellenic Bank takes the top spot in Cyprus, aided by a Fitch sovereign debt upgrade and improved bank credit fundamentals. With its leading position as the largest bank in Denmark, Danske Bank is a new winner following a two-notch upgrade by Moody’s in May reflecting improved governance controls in response to findings of deficiencies in its Estonian operations. Fitch cited this operational remediation as well as improved profitability and capitalization as the bases for its upgrade last fall. Islandsbanki is our new winner in Iceland as the bank picked up a new Moody’s rating in September 2023, edging out incumbent Arion banki this year.

Moody’s upgraded its ratings for five Azerbaijani banks, including the International Bank of Azerbaijan (IBA), based in part on improving trends in the country’s economy, including efforts to diversify beyond the oil sector. While IBA’s score is equal to last year’s winner, Kapital Bank, IBA is larger, earning it the top spot for 2024.

Likewise, in Georgia, TBC Bank is slightly bigger than last year’s winner, Bank of Georgia, giving TBC the Safest Bank title. In Turkey, Fitch and Moody’s upgraded a range of banks following their upgrade of Turkey’s sovereign debt and reflecting increased confidence in the new macroeconomic policies the government implemented last year. These in turn benefit the banking sector, in part by improving access to foreign funding. Each agency acted on up to 17 banks. When the dust settled, Turkiye Garanti Bankasi emerged as this year’s winner. (Fitch upgraded 24 Turkish banks in September, but this rating action occurred after our ratings cutoff date of August 16, 2024.)

Indonesia’s largest bank, state-owned Bank Mandiri, benefits from its leading franchise, solid credit profile, and an improving operating environment. As it is a systemically important domestic bank, both Fitch and S&P cited enhanced levels of government support as the rationale for their upgrade of Mandiri, allowing it to take the top spot.

Under our methodology, a bank that is wholly owned by its parent is ineligible. In Cambodia, ACLEDA is the new winner, as the incumbent, Advanced Bank of Asia, is a 100% owned subsidiary of National Bank of Canada.

Similarly, First Iraq Islamic Bank emerges as a new winner after S&P initiated coverage and incumbent Trade Bank of Iraq was downgraded by Fitch. Citing an improved strategic mandate that will contribute to United Arab Emirates’ economic transformation and a high level of implied government support, S&P upgraded Emirates Development Bank, helping it unseat First Abu Dhabi Bank as the safest in the UAE.

Stanbic Bank Kenya unseated KCB Bank Kenya (KCB). Fitch and Moody’s each downgraded KCB following a lowering of Kenya’s sovereign rating. Stanbic Bank Kenya is not rated by Moody’s and dodged a Fitch downgrade due to its 75% ownership by South Africa’s Standard Bank Group. Securing a new bank rating frequently provides a critical boost in our scoring model: Our winner in Ivory Coast, new entrant Banque Internationale, benefited from Fitch initiating rating coverage that began last December.

To be eligible for inclusion in Global Finance’s Safest Banks By Country, institutions must rank among the world’s largest 1,000 banks by assets and carry at least one long-term foreign currency deposit or debt rating from one of the three major rating agencies. Wholly owned subsidiaries are ineligible. Criteria are broader than for our global rankings, which require a position among the largest 500 banks and rating by at least two agencies.       

Islamic banks based in the Gulf Cooperation Council (GCC) countries continue to expand their reach, taking on Shariah-compliant transactions in new industries and establishing new strategic partnerships.

That aggressive approach has already paid off in years of double-digit growth, and the outlook remains favorable. Moody’s forecasts strong profitability over the next 12-18 months based on solid economic growth in GCC countries, robust commercial activity, and government initiatives that give Islamic finance a bigger role in diversifying the region’s economies.

Part of this growth will come from financing new asset classes. As Islamic banks are required to back every transaction with a tangible asset, real estate has been a large component; but the sector is broadening its reach to include telecommunications and airline assets and sustainability projects. Fueling this expansion is strong issuance of Shariah-compliant sukuk bonds. According to Moody’s, year-over-year issuance of sukuk in the GCC states rose 138% to $69 billion as of June, with Saudi Arabia accounting for 37% of total issuance.

The Gulf’s Islamic banks look to build on this momentum through strategic partnerships. With the recent launch of ADIB Ventures, Abu Dhabi Islamic Bank (ADIB), which tops our rankings, aims to accelerate its digital transformation, collaborating with technology firms to build its own fintech ecosystem. The bank expects this will help it leverage artificial intelligence and other advanced technologies to identify and launch new Islamic banking solutions. In June, ADIB formed a strategic collaboration with DIFC Innovation Hub, the largest financial technology accelerator in the Middle East, which works with clients in Africa and South Asia as well.

This year’s ranking of the safest Islamic banks once again reveals some notable changes.

In March, Fitch upgraded Qatar’s sovereign debt rating, then subsequently boosted the ratings of three Qatari-based banks. Partly on the strength of these upgrades, Qatar Islamic Bank moved up to No. 2 in our rankings from No. 5, Dukhan Bank advanced two spots to No. 6, and Qatar International Islamic Bank moved up two places to No. 7.

Ahli United Bank leaves our ranking due to its acquisition by Kuwait Finance House, creating the second-largest Islamic bank, behind Saudi Arabia’s Al Rajhi. This allowed Warba bank to enter the ranking at No. 10.

For the commercial banking sector, continuous innovation, strong product development and customer service, and effective risk management are just some of the critical elements necessary to sustain and grow a franchise. The banks included among our 50 Safest Commercial Banks continue to demonstrate leadership in their respective markets to earn a spot in this year’s rankings.

The interest rate cycle has shifted in many jurisdictions, as central bank policy has now adopted an easing stance following a period of elevated interest rates necessary to battle inflation. During this time, much of the sector enjoyed healthy profitability bolstered by expanding net interest margins. However, as central banks continue to cut rates to maintain economic growth, it remains to be seen how long banks can sustain these margins as successive rate cuts take hold.

To maintain growth and profitability, these institutions must continue to embrace innovation to boost revenue and increase the efficiency of bank operations. In recent years, the sector has focused on honing its digital offerings with online and mobile banking platforms to provide customizable solutions and powerful apps with user-friendly interfaces and dashboards, to better attract and serve clients. While this involves leveraging vast amounts of bank data to identify and target new customers and products, many banks are accelerating this process by utilizing generative AI technology to unlock valuable insights from this data more rapidly, for the development of new services, automation of internal processes and workflows, and elevation of the bank’s risk management capabilities to better manage inherent risks related to cybersecurity, fraud protection, and compliance issues.

In addition to solid operating performance by many banks, regulatory requirements are also contributing to enhanced capital positions. This has resulted in ratings upgrades and consequent movements in our rankings. Australian banks made the biggest of those moves, as Commonwealth Bank of Australia, ANZ Group, National Australia Bank, and Westpac each rose 10 spots year-over-year and now place among our top 10. This follows upgrades by Moody’s and Fitch during the first half of 2024 that reflect the implementation of a formal resolution-planning framework that also involved an increase in loss-absorbing capital buffers at these banks. This development is designed to ensure stability in the Australian financial system, as these banks collectively represent over 70% of banking system assets.

In many instances, upgrades to a country’s sovereign ratings have a follow-on impact on the ratings of their banks, given the increased ability of the government to support the banking sector. In March, Fitch upgraded the sovereign rating of Qatar to AA, subsequently boosting the ratings of seven Qatari banks including Qatar National Bank, which moved up 11 places to No. 31.

Additional moves as a result of positive rating action include UBS, which rose eight spots in our ranking to No. 21 as a result of a Moody’s upgrade to Aa2 in May 2024. This upgrade reflected the Credit Suisse acquisition, which added additional long-term debt providing loss-absorbing benefits. The bank has stabilized the Credit Suisse franchise following its acquisition in 2023.

With its leading position as the largest bank in Denmark, Danske Bank jumped into the rankings at No. 39 following Moody’s two-notch upgrade of the bank’s long-term debt rating to A1 from A3 in May. This reflected an improvement in governance controls following deficiencies in the bank’s Estonia operations. Fitch cited this operational remediation as well as improved profitability and capitalization as a basis for its upgrade to A+ from A in Sept. 2023. NongHyup Bank benefited from a Moody’s upgrade in November 2023 to Aa3 from A1, and is a new entrant at No. 45.

Under the methodology for the World’s Safest Banks rankings, commercial banks that are majority state owned or receive sponsorship by their governments or regional bodies are excluded. Institutions here may operate in the same markets as state-sponsored competitors but don’t benefit from government backing. Additionally, institutions that are wholly owned by their parent company are ineligible under our criteria.

The institutions in our 50 Safest Emerging Markets Banks rankings are facing a challenging operating environment from rising geopolitical tensions, potential disruptions of global trade, and commodity price volatility. Many banks have posted solid operating performance in recent years, as successive interest rate hikes reduced inflation in their regions and globally and also boosted profitability with expanded net interest margins. Now, as central banks begin to ease interest rates to support their respective economies, the banking sector will focus on sustaining profitability in a lower-rate environment by expanding their loan portfolio and other products.

In the Asia-Pacific region, China’s economy continues to struggle, burdened by a depressed real estate market and weak consumer demand. Growth forecasts indicate further deterioration, with projected GDP of 4.9% in 2024, down from 5.2% last year and falling to 4.5% in 2025, according to the Organization for Economic Co-operation and Development (OECD). Further deterioration in the Chinese economy presents a risk of contagion regionally and globally, with trade disruptions.

South Korea is vulnerable under this scenario, as China is one of its largest trading partners. But the country is on solid footing, bolstered by a strong consumer-technology sector and a semiconductor industry that is enjoying record exports. The South Korean banking sector’s strength is evident in our rankings, holding the top three spots and placing eight banks among the top 15. However, with the OECD’s GDP growth outlook for 2024 revised downward slightly from the organization’s earlier forecasts, to 2.5%, policy makers at the Bank of Korea are looking to ease interest rates.

Taiwanese banks are also well represented in our ranking and place eight institutions among our Top 50. Taiwan’s critical role in the semiconductor sector, combined with trade tension between the United States and China, carries its own set of geopolitical risks.

Chinese banks hold nine positions on our list, up from eight last year. China Merchants Bank is a new entrant.

In the Middle East, which places 18 banks across four countries in our Top 50 Emerging Markets rankings, the danger of a widening conflict between Israel and other Middle Eastern countries poses significant risks to the region’s banking systems and economies. As China’s demand for oil has declined, given its weakening economy, any escalation in the current war could potentially destabilize the oil supply from the region.

Year-to-year changes in our rankings are the result of a number of factors, including expected ratings fluctuations and other elements of our selection methodology. While Emirates Development Bank has a smaller balance sheet than its emerging markets peers on this list, it enters our ranking this year at No. 5 because it now has an asset size that puts it among the top 500 banks with two agency ratings—a requirement under our methodology. Additionally, the bank’s ranking was bolstered by an upgrade to AA by S&P in May.

In many instances, upgrades to a country’s sovereign ratings have a follow-on impact on the ratings of their banks, given the increased ability of the government to support the banking sector. This is the case in Qatar, where Fitch upgraded the sovereign rating to AA in March and subsequently boosted the ratings of seven Qatari banks, five of which are represented in our rankings. Qatar National Bank thus moved up five spots to No. 7, while Qatar Islamic Bank rose 11 places to No. 30. New entrants as a result of this sovereign upgrade include Dukhan Bank at No. 44, Qatar International Islamic Bank at No. 46, and Ahli Bank at No. 47.

In South Korea, a Moody’s upgrade of Suhyup Bank last November helped it to rise 10 spots in our ranking to No. 32. UAE-based Mashreq Bank rose seven places to No. 42 as a result of a Moody’s upgrade in May 2024. Year to year, industry consolidation is a frequent catalyst for position changes, and Ahli United Bank is no longer represented following its acquisition and integration by Kuwait Finance House, now at No. 37. China Merchants Bank is also a new entrant at No. 48 following an S&P upgrade to A- in March. Consequently, these events and upgrades pushed Banque Saudi Fransi, Arab National Bank, and Saudi Awwal Bank out of the rankings. It’s important to note that, with these upgrades, the score cutoff for inclusion in our 50 Safest Emerging Markets Banks rose to 13 points from 12.5 points last year.

Global banks face competing priorities. While a shifting interest rate cycle forces them to compete in a new landscape, they must continue to focus on transforming their business models to maintain revenue growth and profitability.

This will be an especially big challenge for banks in regions and countries that are experiencing weak GDP growth. Significant geopolitical risks remain as well, as the Israel-Hamas war widens and the conflict in Ukraine and Russia drags on.

This year’s ranking of the World’s Safest Banks recognizes institutions that have demonstrated consistency and success in their operations during a period of uncertainty while broadening and enhancing their banking services.

Prolonged high interest rates aimed at combatting inflation have given way to easing in many economies, as moderating inflation encourages central bankers to focus on maintaining economic growth. For G20 countries, overall inflation is forecast to decline from 6.1% in 2023 to 5.4% in 2024 and 3.3% in 2025, according to the Organization for Economic Cooperation and Development (OECD). Core inflation—excluding food and energy—is projected to fall from 4.2% in 2023 to 2.7% in 2024 and 2.1% in 2025. The inflation trend is approaching central bank targets and is expected to be in line with them by next year.

As countries and regions aimed for an economic soft landing after the pandemic, many avoided a severe downturn. The result is global GDP growth forecast at 3.2% for 2024 and 2025, up slightly from 3.1% in 2023, according to the OECD. While some major economies experienced sluggish growth as central banks tightened, notably the eurozone, the UK, Australia, Canada, and Japan, these jurisdictions face a more promising outlook as 2025 GDP forecasts improve.

For global banks, the prospect is cloudier. Many of them benefited during the high interest rate period, their profitability boosted by higher levels of net interest income thanks to favorable interest rate margins on their loan portfolios. Maintaining those margins may be a challenge, however, depending on how quickly loans reprice at lower rates and how competition for customer deposits responds.

Many developed countries have instituted new resolution frameworks aimed at enhancing banks’ capital positions, contributing to rating upgrades and, in turn, movements in our rankings.

Such was the case this year in Australia, whose major banks made the biggest moves in our rankings. Commonwealth Bank of Australia, ANZ, National Australia Bank, and Westpac each rose 13 spots year-over-year and now place among the 25 safest banks. This follows upgrades by Moody’s and Fitch during the first half of 2024, reflecting implementation of a formal resolution-planning framework that also included an increase in loss-absorbing capital buffers.

These changes are designed to ensure stability in the Australian financial system, as the four largest institutions collectively represent over 70% of the banking system’s assets.

As their Australian counterparts moved up, Industrial Bank of Korea, DNB Bank, Bank of Taiwan, and Banque Pictet were each pushed down four places. While Emirates Development Bank has a comparatively small balance sheet relative to its peers, it enters our ranking this year at No. 30 and now ranks among the top 500 banks by asset size with two agency ratings. Under our methodology, in the event two banks have an identical score, asset size is the tiebreaker. This is evident in the case of No. 18, Banque Cantonale Vaudoise; and No. 19, SFIL, which swapped positions this year.

Global Finance’s rankings cover the world’s largest 500 banks by asset size and are calculated based on long-term foreign currency ratings issued by Fitch Ratings, Standard & Poor’s, and Moody’s Investors Service. Our methodology requires a rating from at least two of these agencies. We source the largest 500 banks with at least two agency ratings from a universe of approximately 1,000 banks, as not all banks hold two agency ratings.

Where possible, ratings on holding companies rather than operating companies are used, and banks that are wholly owned by other banks are 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 ranking is not a recommendation to purchase, sell, or hold a security, and does not comment on market price or suitability for a particular investor. All ratings in the tables were valid as of August 16, 2024.

With China’s struggling economy, the country’s banking sector is facing significant growth headwinds, as policymakers attempt to halt the deteriorating economy with a recent wave of monetary and fiscal measures. The economy has been mired in a slump, due in part to the ongoing real estate crisis that involves large inventories of unsold housing units and unfinished properties. The slowdown in property sales has made it difficult for real estate developers to deliver completed houses on schedule, so new home sales declined 25%, year-over-year (YoY), in the first eight months of 2024. Consequently, the economy is battling strong deflationary pressure due to weak consumer confidence and demand, and to this prolonged downturn in a sector that generates 24% of the nation’s GDP. Structural issues of high youth unemployment and low wage growth only exacerbate the problem.

More broadly, expanding trade wars are undercutting momentum for a recovery. Trade tension with the United States recently ramped up with new tariffs on an additional $18 billion in Chinese products, including electric vehicles (EVs) and solar panels. However, $13 billion of that applies to EV lithium-ion batteries, which is significant since importation of Chinese products has grown—now representing over 70% of EV battery imports.

Trade issues continue to spread in other regions. Following an investigation by the European Commission concluding that the EV industry in China is aided by “unfair subsidies,” the European Union announced additional tariffs of 17%-38% on these vehicles over the existing tariff of 10%. In Latin America, Mexico aims to replace Chinese supply chains by moving production from China to Mexico. This will add fuel to a significant trend, as Mexico has now replaced China as the largest trading partner with the US for the first time in more than 20 years. Imports from Mexico rose nearly 5% from 2022 to 2023, to more than $475 billion; while overall Chinese exports to the US fell 20% in 2023 to $427 billion, according to the US Department of Commerce.

These enormous challenges are difficult to overcome, and the Chinese economy continues to deteriorate. Its GDP is forecast by the International Monetary Fund to decline to 5% in 2024 from 5.3% in 2023, falling to 4.5% in 2025. To help bolster the weakening economy and ailing real estate sector, China’s Ministry of Finance was reported in September to be planning its latest round of policy measures to include a stimulus package with the issuance of 2 trillion renminbi ($282 billion) in special sovereign bonds. Half are earmarked for local government debt problems, and half to subsidize the purchase of consumer goods and to provide a monthly allowance for families with two or more children.

The plan also allows local governments to issue bonds for the purchase of land and unsold housing inventories from developers to remove some of the oversupply in the real estate sector. However, many local governments have high debt levels and are limited in taking on additional debt. These measures attempt to build on earlier initiatives. At the beginning of 2024, regulators identified over 5,700 projects that needed support and added over $200 billion in financing to allow 4 million homes to be completed. Nevertheless, millions more remain presold but not completed. Monetary policy measures by the People’s Bank of China (PBoC) involve plans to ease the bank reserve-requirement ratio by 50 basis points (bps). Another cut of 25-50 bps may occur before the end of the year in a move that will free up bank funds for loan expansion.

Additionally, with low demand for credit by the country’s borrowers, authorities reduced the loan prime rate, the benchmark lending rate, including specific relief on mortgages. The down payment was reduced to 15% from 25% for second-time homebuyers. As consumer confidence and personal consumption continue to slide, a more powerful policy tool involves reducing the interest on existing mortgages. This could cut the mortgage payment burden by $21 billion annually and provide a much-needed boost in consumer demand.

As China’s banking sector navigates this difficult operating environment, bank managers continue to reduce their exposure to the real estate sector. According to S&P Global, the share of real estate loans out of total loans fell to 26% in 2023 from 32% in 2020, while exposure at five of the largest banks fell to 29% of loans in 2023 from 37% in 2020. Additionally, the sector is targeting the infrastructure, manufacturing, and technology sectors that are experiencing double-digit growth in 2024. Additional policy measures to support the banking sector include the possible injection of ¥1 trillion into state-owned banks to boost their capacity to support the economy. To support bank profitability, the PBoC lowered deposit rates to increase bank lending margins.

Recognizing consistent ratings stability, our rankings include only one change YoY. In the case of a tied score, our methodology uses asset size as a tiebreaker, and Shenzhen Rural Commercial Bank replaces the Bank of Chongqing in 25th place.

The scoring methodology for the Safest Chinese Banks follows that used in our other Safest Banks rankings. A rating of AAA is assigned a score of 10 points, AA+ receives nine points, down to BBB- worth one point, BB+ worth -1 point, and so on. When a bank has only two ratings, an implied score for the third rating is calculated by taking the average of the other two and deducting one point. When a bank has only one rating, an implied score for the second rating is calculated by deducting one point from the actual rating, and an implied score for the third rating is calculated by deducting two points from the actual rating.

To earn a safest bank distinction in Global Finance’s 2023 Country Winners awards, an institution must differentiate itself from its in-country peers by prudently managing its franchises amid a volatile post-pandemic global economy. In addition to helping clients weather global inflationary pressures and sometimes aggressive central bank policy responses, trade and supply chain constraints, and the outlook for declining GDP growth in many parts of the world, these banks face unique challenges in their respective countries and markets.

This year, we recognize 17 new winners across the 110 countries represented in the Safest Country Winners category. While some of these changes show up for developed countries, many are from the emerging and frontier markets segments. Latin America posted five of the new winners.

Multiple factors contribute to these shifts, of which changes in ratings are the most prominent at both the bank and the sovereign level. S&P lowered Argentina’s sovereign debt rating, and subsequently the ratings of the nation’s banks, citing risks related to “pronounced economic imbalances and policy uncertainties.” Banco de Galicia y Buenos Aires emerges as the new winner, unseating Banco Patagonia. While both entities were downgraded, Banco de Galicia benefits from a Moody’s rating that boosts its score.

A Moody’s downgrade of incumbent Banco del Estado de Chile allows Scotiabank Chile, with its comparatively stable ratings profile, to emerge as the winner in Chile. In El Salvador, Banco Davivienda Salvadoreno benefits from a Fitch upgrade to outscore the previous winner, Banco Agricola. Equity Banque Commerciale du Congo notched an upgrade from Moody’s and now outscores last year’s winner, Rawbank.

In some cases, changes in ratings coverage were the key to winning. Iceland’s Arion Bank benefits from Moody’s initiating coverage last year, which raises the bank’s score enough to unseat Landsbankinn for the Safest Bank title. Meanwhile, Bolivia’s Banco Union is no longer a rated entity, allowing Banco Mercantil Santa Cruz to take the top spot in that Latin American country.

Our methodology dictates that banks wholly owned by a parent company are ineligible for consideration. In Costa Rica this year, Banco Davivienda replaces BAC Credomatic, which is now a wholly owned subsidiary. Banco Davivienda’s score also benefits from a Fitch upgrade. In Hungary, MFB Hungarian Development Bank takes the top spot, the previous winner, Erste Bank Hungary, being now 100% owned by parent Erste Group Bank. And in Italy, Intesa Sanpaolo replaces FCA Bank, which is now a wholly owned subsidiary of Credit Agricole.

Year-over-year changes in rank attributable to this important ownership feature frequently result from acquisitions and corporate restructurings. In Oman, incumbent HSBC Bank Oman was acquired by Sohar International and its ratings were withdrawn and the bank was dissolved, paving the way for Bank Muscat to take the Safest Bank title there.

The size of a bank’s balance sheet is another key methodological element, serving as a tiebreaker in cases where banks compile equal scores. This enables Advanced Bank of Asia to edge out previous winner ACLEDA Bank in Cambodia and Bank of Georgia to beat TBC Bank, last year’s winner in the Caucasian republic. Meanwhile in Ghana, Guaranty Trust Bank wins over former title holder United Bank for Africa. Eurobank replaces National Bank of Greece, and National Bank of Pakistan unseats Habib Bank.    

To be eligible for Global Finance’s Safest Banks By Country awards, institutions must rank among the world’s largest 1,000 banks by assets and carry at least one long-term foreign currency deposit or debt rating from one of the three major rating agencies. Wholly owned subsidiaries are ineligible. To identify the safest bank in each country, we have adopted broader criteria than for our global rankings, which require a position among the largest 500 banks and a rating by at least two agencies.

Overall performance of eurozone banks has been solid this year as generally well-capitalized institutions have reported sustained profitability. With the IMF forecasting GDP growth of only 0.9% for 2023 and 1.5% next year for the region, many institutions are aggressively boosting loan-loss reserves. Western Europe’s strength is reflected in our global rankings, the region claiming nine of the top 10 spots and 42 entries in the top 100 overall. France leads the region with nine.  

Notable shifts include UBS falling 11 places to No. 48 following its takeover of Credit Suisse. Caisse des Depots et Consignations fell one place thanks to a Fitch downgrade while Deutsche Apotheker- und Aerztebank fell 17 spots to No. 52 thanks to Moody withdrawing its ratings. Others enjoyed happier ratings results. SFIL benefitted from a Moody’s upgrade, raising it six places from its rank last year.  

The Asia-Pacific region is well-represented with 26 names among the World’s 100 Safest Banks. Singapore leads with three big banks—DBS, Oversea-Chinese Banking Corp. and United Overseas Bank. Australasia placed six with Kiwibank benefitting from a Fitch upgrade rising to No. 44.  

In North America, Canada tops the region with RBC at No. 10, and a total of seven banks among the 100 safest. In the United States, the Federal Farm Credit banks fell up to eight places each following Fitch’s August downgrade of the US sovereign rating. Still, they remain the highest-ranking institutions in the US, which has 10 banks on the list, the most of any one country.  

Institutions in the bottom half of the top 100 show increased regional representation.  These banks upped the tally for the Asia-Pacific region adding 18 banks, largely from China and South Korea, for an overall total of 26 institutions in the top 100, and reflects four additional UAE domiciled banks for a total of five overall.

It also includes banks in new regions notably in Central and Eastern Europe with Komercni Banka of the Czech Republic and ING Bank Slaski in Poland, and in Latin America with Scotiabank Chile.

Global Finance ranks the world’s largest 500 banks by asset size, calculated based on 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 are used, and banks that are wholly owned by other banks are 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 ranking 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 18, 2023.