As per Bloomberg Markets ranking, Singapore’s OCBC bank topped the list of the World's strongest bank. Other than OCBC two other Singapore banks make the top six in the Bloomberg Markets ranking. Fifth position has been bagged by DBS Group Holdings Ltd. (DBS) while sixth ranked goes to United Overseas Bank (UOB).
Bloomberg ranking includes banks with at least US$100 billion in assets. The ranking is based on five criteria, Tier 1 capital compared with risk-weighted assets; nonperforming assets compared with total assets; and efficiency, a comparison of costs against revenues.
In case economy is behaving roughly then Tier 1 capital acts as a shock absorber against losses. Tier 1 capital includes a bank's cash reserves, outstanding common stock and some classes of preferred stock.
Bloomberg’s data comprise of other countries like Canada which has five banks in the top 20. Third position goes to National Bank of Canada. Second position was acquired by Svenska Handelsbanken AB of Sweden.
While in Top 20, only three banks from United States appears, number seven position goes to Fifth Third Bancorp, Fourteenth position is bagged by JPMorgan Chase and sixteenth ranked belongs to Citigroup.
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