World's Best Banks 2024 — Introduction | Global Finance Magazine

Despite the drama of bank failures, global banking achieved growth in 2023.

Bank profits in the Asia-Pacific region soared, with many financial institutions posting record net profits. With the advent of monetary easing, the banking sector's 12-year battle against negative interest rates seemed to be coming to an end, even in hardened Japan. At the end. In China, absenteeism from the party was conspicuous. Uncertainty in the real estate sector has left emotions in shreds.

Last year, the global banking industry became more cost efficient and improved asset quality. Still, the direction of travel is determined by economic growth. Movements in central bank benchmark interest rates, particularly those from the U.S. Federal Reserve. Request for credit. and the pace of loan delinquency.

The industry lost 60,000 jobs globally last year, the highest number since the crisis, as the cost of capital came into focus and banks sought to reduce cost-to-income (CTI) ratios. Investment banks' fee wallets have collapsed as deal closings and listings have shrunk.

At the same time, traditional bank lending faced the threat of thriving private credit markets engineered by the non-bank financial sector. Leveraged buyout funds were more likely to be sourced by large hedge funds than by large banks at more competitive interest rates.

Environmental, social and governance (ESG) issues continued to be a key theme, with tighter regulation driving increased operational input across the board in Europe, and companies and banks in Asia trying to catch up on sustainability. The game is in the midst of a convergence of regulations centering on ESG, which is emerging in this region.

Sustainable finance is becoming more and more popular around the world, whether in the form of transition, which is mainstream in Japan, or in full-fledged green/impact issuance, which is typical in Europe and the US and is rapidly growing in the Asia-Pacific region (excluding Japan). It has become mainstream throughout the procurement field.

In Europe, banks had their best year on record thanks to the NIM effect, resilient asset quality and low CTI ratios. The Bank for International Settlements' capital requirements metrics are extremely strong, with more capital returned to bank shareholders last year than at any time since the crisis. —Jonathan Rogers

methodology

With input from industry analysts, business executives, and technology experts. global finance Editors use the information provided in the entry and independent research based on objective and subjective factors to select the Best Bank Award winners. You do not have to enter to win, but the materials provided with your entry will increase your chances of success. Applicants may provide details that are not publicly available.

Judgments will be based on performance from January 1, 2023 to December 31, 2023. An algorithm is then applied to narrow down the list of candidates to arrive at a numerical score where 100 points equals perfect. The algorithm incorporates criteria weighted by relative importance, including knowledge of local conditions and customers, financial strength and security, strategic relationships, capital investment, and product and service innovation.

Once you have narrowed down your field, final criteria include global coverage, staff size, customer service, risk management, product and service range, execution skills, and intelligent use of technology. In the case of a tie, our bias leans towards local providers rather than global institutions. We also tend to prefer privately owned banks over government-owned institutions. The winners will be the banks that best serve the specialized needs of companies engaged in global business. The winners are not necessarily the biggest, but the best. In other words, companies with qualities companies should look for when choosing a provider.

Best banks in the world 2024

National and regional winners