Thursday 21 July 2011

Are the well capitalised banks the biggest banks?

When it comes to lending there are good banks, there are reckless banks and then there are all those in the middle. As a shareholder one wants to see a good return on one's investment but in pushing a bank too far into unsuitable lending in the search for ever better returns one wants / needs a good capital base to weather the storms that crop up from time to time. The alternative is to plump for a bank that is well capitalised and prudent in its lending.

Interestingly, the 11 best capitalised banks (capital / assets) are all in the bottom 50 in terms of total assets, suggesting that biggest isn't always best.

The eleven are:
1. China Construction Bank (London) Ltd
2. Melli Bank Plc
3. Bank of the Philippine Islands (Europe) Plc
4. Metro Bank Plc
5. European Islamic Investment Bank Plc
6. C I T Bank Ltd
7. Allied Bank Philippines (UK) Plc
8. Bank Saderat Plc
9. Macquarie Bank International Ltd
10. Gatehouse Bank Plc
11. A N Z Bank (Europe) Ltd

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