Which countries have the safest banks? What banks are considered to be more reliable within a certain country? If you are mulling over the idea of moving to another country, opening a bank account in a foreign country or are just curious about the countries with the safest banks in the world, keep reading; this detailed list will answer your questions.
Finland
To begin with, Finland’s banking sector is considered to be one of the safest in the world due to the fact that there are mostly savings and co-operative banks. In addition to that, new banking technologies are constantly implemented in Finland’s banking sector. Hence, it’s no surprise that opening an account or making various transactions in Finland is relatively easy. Finland’s central bank governor has led the way (by example) on splitting investment banking and deposit-taking activities in the European Union. Additionally, Finland’s banks rank on the top of all lists that feature the safest banks in the world.
Canada
Canada’s banking system is a textbook example of stability. The country has managed to have zero banking failures even during the period of the Great Depression (which I think we all can agree was graver than travel depression). In fact, the only two Canadian banks that bankrupted in the last 100 years were Canadian Commercial and Northland Bank. This says a lot about the safety of keeping your money in a Canadian bank.
Hong Kong
When talking about the countries with the safest banks we can’t forget to mention Hong Kong. Being the financial center that it is, it’s no surprise that this country has some of the safest banks on the planet. Even more, all global banks have their branches in Hong Kong; so, there is a variety of options to choose from.
Norway
Even though Norway has faced a few issues with its banking system recently, its banks still remain to be one of the safest in the world. In case you are required to submit an essay on the banking sector, you can definitely get some inspiration from the ways in which Norway has dealt with the challenges within its banking system.
Singapore
Singapore is one of the world’s most important financial centers and home to some of the safest banks in the world. Singapore’s banks have been declared as the safest ones in Asia year after year despite the challenging macroeconomic environment in recent years.
Germany
On the Global Finance’s list of the top 10 banks, four are from Germany. One of the reasons why German banks are so trusted is probably the country’s strong economy. Additionally, Germany takes its banking very seriously and is paying special attention to capital controls. However, there are certain disadvantages to opening a bank account in Germany as a foreigner. One of the main ones is the low interest rates that foreign accounts generally get on their savings accounts.
Switzerland
We can?t really talk about bank secrecy without at least mentioning Switzerland. Ever since the implementation of the country’s famous bank secrecy in 1934, Switzerland has been the most popular destination for offshore banking in the world. Banks in Switzerland are required by law to have high capital requirements and strong depository protection in order to protect themselves in case of a financial crisis.
Luxembourg
Attracting thousands of investors every year, Luxembourg is one of Europe’s main offshore hubs. In addition to opening bank accounts, foreigners can also get V-Pat credit cards, depending on their income levels and sources. Luxembourg is also home to Banque et Caisse d’Epargne de l’Etat; a bank that’s often cited as one of the safest banks in the world.
Sweden
Similarly like Norway and other Scandinavian countries, Sweden has a very safe banking system. Sweden’s banks are stable and independent and the country’s currency remains strong despite the ongoing financial crisis in Europe. Additionally, Sweden has relatively good interest rates compared to other offshore countries, and banking staff are not allowed to disclose any information on accounts owned by foreigners unless they’re compelled by the law.
Guatemala
When talking about the countries with the safest banks, Guatemala might not come to mind. However, we can’t forget to mention Guatemala when talking about the world’s up and coming offshore destinations. Three banks from this country; Banco Industrial, Banco de Desarrollo Rural, and Banco G&T International are ranked among the safest banks in the world according to the World Economic Forum.
Chile
According to Global Finance, Chilean banks dominate the list of safest banks in Latin America. This comes as no surprise as Chile is the fastest growing economy in the region for the last few decades.
Panama
It might come as a surprise because Panama, a country known for its beaches, nature, and waterfalls is on this list. Especially because the country doesn’t even have a Central bank. However, that isn’t an obstacle for the banks in Panama to be some of the safest in the world. Panamanian banks are conservative and most of them have capital ratios that are twice the size of the required minimum! Also, Panama is traditionally famous for being a tax haven for many American businessmen.
South Africa
Even though it’s a country famous for its stunning nature and wildlife, year after year, South African banks dominate the lists of the safest banks in Africa. Additionally, South Africa’s so-called Big Four Banks (Standard Bank, First Rand Bank, Nedbank, Barclays Africa) are widely seen as some of the safest ones in the world.
Belize
Previously known as British Honduras, Belize is a tiny country in the Caribbean and one of the most famous tax haven destinations in the world. Belize’s government made a plan in the 1990s to improve the country’s economy through its financial industry. In the last 30 years, not only did they achieve this but today, Belize is the favorite offshore destination among businessmen from around the world.
Vanuatu
In case you didn’t hear about it, you’re not alone. Vanuatu is a tiny island nation in the South Pacific Ocean that takes pride in being a tax-free country for investors. This makes Vanuatu one of the hottest offshore destinations in the world. All banks in Vanuatu have permission to conduct business with foreign residents and provide international services through a network of consultants and correspondents.
Was this list helpful? Did some of these countries with the safest bank surprise you? Do you think we didn’t mention some countries that are worth mentioning? Let us know in the comments!
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I found this post to be very fascinating and helpful for considering moving abroad. I expected to see Switzerland and Finland on the list, but I was surprised to find Guatemala. I had no idea that it was popular with off shore banking. I was actually surprised to see Chile on the list too, and it is neat to hear that it ranks at the top for Latin American countries.
Thanks, Leah. Yes, a lot of people find it staggering to know that some banks in Latin America are doing so good.
As you as I opened your post, the first thing I did was to scroll down to see where’s Swiz! Haha.
Yeah, it is infamously known in our country, India, for all the money laundered by corrupt people….
While I can imagine how the Scandinavian countries, Germany or Luxembourg are super safe, I didn’t know about the Central American countries. Good to know.
Hahaha! I know about the Swiz bank and yes! Everyone is surprised when they hear about the Central American countries.
Now, this is an interesting list. I have so often read about the safest countries for travel but never anything on the countries with the safest banks. I must say I was surprised to see Guatemala, Belize, and Panama on that list. But as you rightly mention, isn’t that why Panama is such a tax haven!
Thanks, Soumya. I am glad you’ve found it interesting.
Well this is definitely an unusual subject for a post! It’s honestly something I’ve never thought about when traveling, but this has been a real eye opener. I’m not surprised one bit that Scandinavian countries are on this list, it’s super safe in general. Very surprised about Guatemala!
Thanks, Lisa. Yeah, so was I surprised too for the Guatemela.
Well I’m proud that my home country is number 1 on the list!! But I was surprised some of other countries on the list. Some are countries I didn’t necessarily think that would be on top but good for them I guess. Also view countries are missing that I thought might make it to the list. Interesting post!
Thanks, Paula. I am glad you found it interesting.
I expected Switzerland and Germany to be on the list. I was surprised to see some central American countries on the list though. This is really helpful to know. I lived abroad in Russia and had problem after problem with my bank there. It’s really something people should consider before moving to a new country.
Totally on your side Elizabeth and what surprises me the most that not all people who move abroad considered or even bother knowing about the banks.
I already knew that countries like Switzerland, Hong Kong and Singapore would be on the list. I have visited Singapore before and it is really one of the safest country I’ve been to so its not a surprise to see Singapore on the list. I didn’t know about other countries though, glad to know about these. Thanks for sharing this!
Thanks.
I always have heard about Swiss banks and known as it is the safest banks. But good to know the list of other safest banks in the world. Surprised to see that Guatemala and Chile would also be in this list. Norway and Luxembourg are the safest places, so I guess there banks too are safest.
Thanks, Yukti.
Guatemala and Panama?? Are you kidding?
Actually, no. Guatemala and Panama might sound as third-world countries to some but their banking sectors have progressed greatly throughout the years. Many Americans use the banks in these two countries for offshore transactions and local banks have proven to be a very reliable partner so far.
I am upset. My country, South Africa has the best banking system in the world.
I use Saambou Nasionale bank as an example. At the time RUMOURS spread like wildfire that this bank was bancrupt. Customers queued for days at all the 350 branches to withdraw money.
The bank was not bancrupt, just a rumour and as a result of this large scale withdrawals the bank went under liquidation. The end result, nobody lost any money. The bank was solvent. 😂 The banking system in SA is so good that you wlll get your money even if the bank go under liquidation. 😂
Hi Andre, no reason to be upset 🙂 You are right though, your country did have some bad publicity in the past. I see your point about Saambou Nasionale Bank but this just shows the dodgy foundation of the fractional reserve system. The fact that the bank was completely solvent prior to these events is even worse.
What about the Cayman Islands?
the Cayman islands get more than 2 million visitors per year, much more than any of the countries listed here.
Suggest you remove Canada from the list, after the Prime Minister, Justin Trudeau, illegally invoked the Emergency Measures Act because he didn’t like the recent protests by the Truckers for Freedom Convoys in Ottawa and elsewhere across the country. Like a spoiled child, he invoked a never before used act (formerly the War Measures Act, rewritten in 1988) unnecessarily. It was only intended for use in response to real emergencies, like threat of war or invasion, not to silence some truck driver’s horns and political opponents, and not to be used as a means of grabbing anti-democratic absolute power. The reasons he cited for it’s use did not meet the 3 part threshold to be deemed an actual emergency, according to legal experts in Canada. After invoking it, he proceeded to punish his own citizens by FREEZING THEIR PERSONAL BANK ACCOUNTS WITHOUT DUE PROCESS, to punish them for disobedience, and branded them as terrorists, because they refused to obey his dictatorial orders.
Thank you for suggesting some other places to move money out of Canada where it will be safer. I would not invest in Canada. Too risky under Trudeau and his leftist supporters. He is also a proponent of the New World Order/World Economic Forum under globalist Klaus Schwab, which supports the Great Reset of the world’s economy under one international governing body, controlled by them, which goes against any national interests and freedoms it may damage or eliminate. The personal and financial freedom of every person on Earth will be at risk, if it is allowed to proceed.
Looking back at the time when I wrote this article, I could honestly never imagine something like this would happen in Canada. It’s sad for the people of Canada and shameful for the Canadian authorities. But as of right now, you are absolutely right, after recent developments, Canada does not deserve a spot on this list anymore and we’ll do our best to update the article soon. I hope that this will prove to be an isolated incident and other countries won’t follow Trudeau’s oppressionist policies.