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Top 1000 World Banks – Brazilian and Russian banks top soundness rankings

The banks represented in The Banker's Top 1000 soundness rankings come from a diverse range of countries, but it is two BRIC lenders that take the top spots.
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While it is a Brazilian bank and a Russian bank that top the soundness tables in 2014’s Top 1000 World Banks ranking, there remains a diverse representation of other countries in the lists.

Philip Alexander reports on the full results of The Banker’s Top 1000 World Banks ranking 2014, in the story Top 1000 World Banks 2014: Back on track?

In the top 25 rankings of soundness, as measured by the Bank of International Settlements (BIS) ratio, Brazil’s Banco Original was ranked first. The bank’s BIS capital ratio is 74.5%, which is higher than last year’s winning figure from US-based United National Corporation of 70.25%. In this year’s BIS ratio rankings, United National Corporation has been nudged into second place, with a ratio of 70.11%. 

Banco Original also scores well in the table for soundest capital-assets ratio (CAR). It comes second in this table with a CAR of 79.2%. However, it is Russia’s National Reserve Bank that has the highest CAR – 81.31% – although this is lower than the highest figure in the rankings from last year, Electro Banque’s 95.09%. CAR is an inverse measure of leverage, which means that a high CAR such as this means the bank has a low level of leverage. 

Bahrain has two banks in the top five CAR table, with Gulf Finance House and First Energy Bank in third and fourth place, respectively. There are five US banks that feature in the top rankings by BIS ratio (a decrease from seven banks last year) and there are four in the CAR table. 

In the top five by BIS ratio, it is United National Corporation that ranks second and Franklin Resources comes fourth. When their soundness is measured by CAR, however, they slip down the rankings to fifth and sixth place, respectively. 

Top 1000 World Banks Ranking 2014 – Soundness

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