Smaller banks dominate soundness rankings

Once again in the Top 1000 rankings, the banks with the highest capital-asset ratios (CAR), and thus the banks on the soundest financial footing, have tended to be smaller banks, both from the developed and developing world. France's Electro Bank led the field, as it did last year, with a CAR of 87.47%; this compares with an average CAR of about 6% to 7% for the world's biggest banks. Of the top 25 soundest banks, 18 are from emerging markets. This reflects the more conservative nature of banking in these regions, owing to higher perceived risks.

In terms of return on assets, it was the smaller or more medium-sized US banks that came out on top. Franklin Resources, United National Corporation and Central Bancorp, a new entry to the top 25, grabbed the top three spots. A further three US banks also made the top 25 in this year's rankings. This compares with just three US banks in the equivalent table last year.

The banks that made the best return on their capital in 2009 tended once again to come from the emerging markets. This is apart from the bank at the top of the table, First Financial Bancorp, a US bank that had a profit on average capital (PAC) figure of 77% in 2009. Interestingly, the number of Russian banks that made the top 25 for PAC has fallen from eight in the 2008 rankings to five in the 2009 rankings, to just one in this year's rankings.

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