Thursday , 17 August 2017


The 10 Strongest Banks In the World Are….

So writes Josephine Lim (www.theloop.ca) in edited excerpts or paraphrasing of the contents of her original post* entitled World’s 10 strongest banks.

[The following article is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Lim goes on to say in further edited excerpts:

One of the key indicators that a bank has a strong financial situation is its Tier 1 capital ratio which compares the bank’s capital compared to the credit risk the bank’s assets have. For example, cash has zero risk, while a loan has more risk. It’s a ratio used worldwide to measure how well a bank can handle a sudden economic downturn.

Below are the list of countries in reverse order:

10. Hang Seng Bank in Hong Kong

  • Hang Seng is the second largest bank in Hong Kong with HSBC owning a majority of the bank.
  • Tier 1 ratio: 12.2
  • Annual interest rate on day-to-day savings account: 0.01 per cent on an amount over $5,000
  • Annual interest rate on classic credit card: 32.99 to 35.72 per cent on retail purchases and 36.16 to 39.21 per cent on cash advances

9. Citigroup in the U.S.

  • Citibank was an unexpected bank to see on this list. It was only five years ago that the U.S. government kept the financial institution from going into bankruptcy with its $45 billion bailout.
  • Tier 1 ratio: 14.1
  • Annual interest rate on day-to-day savings account: 0.01 per cent
  • Annual interest rate on classic credit card: 12.99 to 22.99 per cent on retail purchases based on credit worthiness and 25.24 per cent on cash advances

8. Toronto-Dominion Bank in Canada

  • TD Bank is becoming a powerhouse in the banking sector. Though the bank slipped to eighth place from fourth place last year, it continues to expand in the United States.
  • Tier 1 ratio: 12.6
  • Annual interest rate on day-to-day savings account: 0.25 per cent on balances less than $5,000 and 0.4 per cent on balances $5,000 and up
  • Annual interest rate on classic credit card: 19.99 per cent on retail purchases and 22.99 per cent on cash advances

7. Bank of Nova Scotia in Canada

  • Scotiabank increased its status a fair bit by jumping to spot number seven from spot number 18 last year.
  • Tier 1 ratio: 13.6
  • Annual interest rate on day-to-day savings account: 1.2 per cent on balances $5,000 and up
  • Annual interest rate on classic credit card: 19.99 per cent on retail purchases and 21.99 per cent on cash advances

6. United Overseas Bank in Singapore

  • The United Overseas Bank in Singapore rose in the ranks by one spot.
  • Tier 1 ratio: 14.7
  • Annual interest rate on day-to-day savings account: 0.05 per cent on balances less than $50,000, 0.075 per cent on balances between $50,000 to $100,000 and 0.1 per cent on balances more than $100,000
  • Annual interest rate on classic credit card: 24 per cent on retail purchases and 24 per cent on the amount of cash withdrawn

5. DBS Group Holdings in Singapore

  • DBS Group Holding improved its ranking from last year, landing in fifth compared to eighth.
  • Tier 1 ratio: 14.0
  • Annual interest rate on day-to-day savings account: 0.05 per cent on balances less than $350,000, 0.075 per cent on balances between $350,000 to $1,000,000 and 0.1 per cent on balances more than $1,000,000
  • Annual interest rate on classic credit card: 24 per cent on retail purchases and 24 per cent on cash advances

4. Royal Bank of Canada in Canada

  • The Royal Bank of Canada saw its spot improve when it rose to fourth on the list from sixth.
  • Tier 1 ratio: 13.1
  • Annual interest rate on day-to-day savings account: 0.05 per cent on balances less than $3,000, 0.1 per cent on balances between $3,000 to $5,000 and 0.25 per cent on balances $5,000 and up
  • Annual interest rate on classic credit card: 19.99 per cent on retail purchases and 21.99 per cent on cash advances

3. Canadian Imperial Bank of Commerce in Canada

  • CIBC has held a steady ranking spot in Bloomberg’s list, which is impressive with the issues Canada’s economy has been facing.
  • Tier 1 ratio: 13.8
  • Annual interest rate on day-to-day savings account: 0.1 per cent on balances less than $3,000 and 0.3 per cent on balances $3,000 and up
  • Annual interest rate on classic credit card: 19.99 per cent on retail purchases and 21.99 per cent on cash advances

2. Oversea-Chinese Banking in Singapore

  • The Oversea-Chinese Banking lost the top spot that it held for two years in a row.
  • Tier 1 ratio: 16.6
  • Annual interest rate on day-to-day savings account: 0.05 per cent on balances between $10,000 to $250,000, 0.08 per cent on balances between $250,001 to $1,000,000, 0.1 per cent on balances above $1,000,000
  • Annual interest rate on classic credit card: 24.96 per cent on retail purchases and 28.92 per cent on cash advances

1. Qatar National Bank in Qatar:

  • The bank is the largest financial institution in the country and is the largest lender in the Middle East.
  • Tier 1 ratio: 21
  • Annual interest rate on day-to-day savings account: 0.25 per cent on balances less than $5,000 and 1.5 cent on balances $5,000 and up
  • Interest rate on classic credit card: 1 per cent per month on retail purchases and 1 per cent per month on cash advances

So there you have the score: Canada with 4; Singapore with 3; China (Hong Kong) with 1; the USA with 1 and Qatar with the strongest bank in the world. Congratulations!

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://www.theloop.ca/living/money/wallet-wise/photo-gallery/-/p/6263/World-039-s-10-strongest-banks/2351499 (© Bell Media 2013 All rights reserved)

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