How accurate is this "World's Safest Banks" list?

[mike400]

What do you think?

https://www.gfmag.com/magazine/november-2020/worlds-safest-banks-2020

 

[Silvio]

I think this is a useful list of banks to stay away from

They are very risk averse in their business , that's why they are safe. If you don't loan you'll never have Non performing loans and people can never default on you. It's kind of a logical thing . Trying to apply with them using structures in which the UBO is not a bona fide citizen and resident is a waste of time, they are risk averse and won't look at you.

Almost like every single message you write on this forum is just pure garbage.
You want to tell me that DBS BANK doesn't provide loans? You advise people to STAY AWAY from the most solid banks in the world?
Few days ago you claimed that with a $100k deposit a bank can loan 500x that... WTF are you smoking.
Honestly I hope you get banned, you provide absolutely zero value to the forum and mislead people constantly.

And to the subject of the thread:
Great list of banks, some of them will open an account even for a non-resident for a big enough deposit.
ZKB, DBS, OCBC, SEB, UOB, Pictet, UBS are the ones that are more or less well known for that.

 

[ernestdezoe]

100k deposit a bank can loan 500x that

Dude I am not the one claiming it.

It's the Fed/ECB requirements. 1 dollar of customer deposits supports 10 dollars of loans (not 500x never claimed that). It's called monetary multiplier and fractional reserve banking.

Please educate yourself, I don't think you'll get past the equations though

https://en.wikipedia.org/wiki/Money_multiplier

DBS BANK doesn't provide loans?

If you switched the managment of DBS and Wells Fargo, keeping the same size of both banks then DBS would be providing much more loans that they currently are. Of course DBS provides loans, what I meant is that nowhere near enough the maximum potential. No banks on that list goes even near their maximum loaning potential.

Why? Risk averseness. It's not like they are risk averse on loaning and then embracing risky clients in onboarding such as people who live on the other side of the planet and incorporated an LTD in the caribbean with 1$ of share capital.

Go try and open an account in Singapore, or Zurich, or HK...with the aforementioned conditions, I challange you.

Great list of banks, some of them will open an account even for a non-resident for a big enough deposit

This forum is populated by people trying to park their 100k. Of course if you have enough money they doors are open for you, but that is true for everything , and people in here won't be able to do anything with that information

> Honestly I hope you get banned

The feeling is mutual

 

[JosephLL]

I apologize but I'll have to scream now:

BANKS ARE NOT IN BUSINESS OF LOANING MONEY, THEY ARE IN BUSINESS OF CREATING MONEY BY PURCHASING SECURITIES. And that security is your signed loan contract. A private bank:

* Is not loaning deposits. Deposits are a liability, loans are assets.
* Is not loaning reserves.

There's one AND ONLY ONE constraint to how much *private* money (aka deposits) a bank can create: its own risk policy. And that's it.

And now here's something to rape your mind even further: Did you know that it can create its own capital?

 

[ernestdezoe]

There's one AND ONLY ONE constraint to how much *private* money (aka deposits) a bank can create: its own risk policy. And that's it.

A bank doesn't create money for itself. When a bank gives out a loan, the client doesn't just sit on the loan. It wires the money out to other people and companies. So the money "created" just sits with the creating bank for a minimum amount of time

An accurate way of saying this is that the banking sector of a country as a whole creates its own money via loans.

In any event regulators put a ceiling to the risk policy which is a 10-1 reserves to loans ratio.

Finally the banks in the above list they are very far from that ratio. More risk prone banks try to max out their ratio because a private individual or company will always command a higher interest rate on the loaned money compared to the interest rate paid on reserves

 

[JosephLL]

No. That is not correct. Loanable funds theory is a myth. Confessed by the BoE itself.

Every *single* bank creates deposits in the event of loan distribution, and is not constrained by anyone in the action of how much, or for how long, what for and to whom it creates them.

 

[ernestdezoe]

Every *single* bank creates deposits in the event of loan distribution

What do you do with the money from a loan? Do you keep it sitting in the issuing bank? No, you spend it.

Also if what you say is true why are there so many stress tests and the requirements which expressily say that Central banks reserves are equal to government bonds for the purposes of passing the stress test

 

[JosephLL]

When deposits "flow" (in reality money does not move, especially when we talk about crossing jurisdictions, it magically disappears on one balance sheet and appears on another - these are all debt obligations to be settled), between banks what is settled are reserves. Reserves :

* Circle only among banks. They have no purchasing power. They are *not* money for non-banks. They exist only in a central bank's book whose only clients are banks and only one non-bank has access, and that is treasury. And treasury (=sovereign) constrained himself that he cannot have free access to them.
* Are a closed loop system. In theory any amount of reserves (even $1 in fed's book) can support the whole banking system in settling there mutual debts. Central bank *will always* create enough of them (repo facilities) to facilitate smooth operation of the system. They are the scammiest trick in the bankers sleeve.

* Compliance to Basel framework (what those stresstests are for) may lower bank's money creation appetite, but it in apsolutely no way explicitly tells how much money (=deposits) banks may create. And it didn't even exist 30 years ago, and the whole banking system functioned without it.

 

[AMD]

This list is not better then any of the other threads with list of banks.

I can't believe that someone at least open a title for a thread like this nor that it can be discussed like that.

If you need a reliable resource then go mentor group gold and check the Resource section + the guides there, that's the s**t.

 

[uplana]

This list has nothing to offer!