Australian banks make it to Global Finance's safest banks list

I / Melbourne September 3, 2009, 13:56 IST

Four Australian banks, including National Australia Bank and Commonwealth Bank, have been ranked among the safest banks in the world, according to a US-based global finance magazine.     

The list of the safest banks, by US-based Global Finance magazine, revealed that four Australian banks have leapt over struggling rivals to make it into the ranks of the top 20 safest banks in the world, according to 'The age' report today.     

Global Finance found the banks that kept "an iron grip on their risk exposure" before the onset of the financial crisis have been able to hold on to their rankings. 

"At the same time, the big name banks that lost their safest bank ranking during the credit crunch are still absent from the list as they struggle to rebuild their credit standing," the magazine said.     

The rankings are based on a comparison of the long-term credit ratings and total assets of 500 large banks around the world. Ratings are based on the assessment of credit agencies Moody's, Standard & Poor's and Fitch.     

Australia's National Australia Bank has the highest ranking among banks from the country, coming in at number 11, one notch above the Commonwealth Bank.

In Global Finance's previous top 50 assessment released in 2007, NAB was at number 18 and Commonwealth Bank at 19.     

Other fast movers are ANZ, which is now sitting at number 15, up from 28, followed by Westpac Bank at number 16, compared with 29 previously. Commonwealth Bank's New Zealand operation ASB Bank has also made it to the list at number 17, one notch above global giant HSBC Holdings.    

The top 10 safest banks are dominated by continental European lenders, with Germany's KfW taking the number 1 spot.     

The highest-ranked bank operating in Australia is Rabobank, which comes in at number six.