Yet more evidence that the big NZ banks, and their Australian parents, didn't need government support last year or today: the Australian parents are ranked between 11th to 16th in the top 50 of the world's safest banks by Global Finance, see http://www.gfmag.com/tools/bank-rankings/2341-worlds-50-safest-banks-2009.html .
Almost uniquely, the majority of Australia and New Zealand's banking system consists of banks in the top 16 of the 50 safest banks in the world (they have over 80% of the finance market). Perhaps only Germany could be included in this: they have spots 1, 4, 7, 8 and 28 on the list (I'm not sure if these five banks are the majority of the German banking system). The French have six on the list but they're generally lower on the list. Canada and Sinapore also have plenty of strong banks on the list.
American banks are notable on the list by their absence, except for a few near the end of the list.
I will post evidence soon on how well the big four banks in NZ remained well capitalised, profitable and liquid during the crisis last year, showing they didn't need government assistance. Watch this space!
The Carl Menger Undergraduate Essay Contest for 2012
-
The Society for the Development of Austrian Economics is pleased to announce the third annual Carl Menger Essay Contest. The purpose of the contest is to rec...
3 hours ago
2 comments:
David,
As a US resident planning to migrate to Auckland next year under the Investor Visa, is there a maximum level of deposits in any one New Zealand bank that you would think was not wise? In which two NZ banks do you have the most confidence?
As the owner of an insurance brokerage firm for the last 30 years, it's nice to know there are some like-minded free-market business people in NZ. Unfortunately, the number in the US is dramatically diminishing. My fellow "boomers" and I have no one to blame but ourselves. Thanks.
To anon: Hello there, and let me firstly welcome you to NZ, and I hope you find it to be a land flowing with milk and honey rather than lawsuits.
With respect to the major NZ banks (ANZ National (ANZ and The National Bank), ASB, BNZ, and Westpac), they all have about the same credit rating, and the rating is so high that your risk, in depositing funds with them, is very low. There are three other registered banks here with similar, or higher ratings: Kiwibank (owned by NZ government), HSBC (incorporated in Hong Kong but this is ok), and Rabobank. Nevertheless, the principles of diversification still apply, i.e. 14% in each is better than 100% in one.I don't have two particular banks that I have the most confidence in, financially. However, I have heard good things about the service with ASB, but I don't bank there myself (and less favourable things said about ANZ).
I would limit exposure to any one bank not for fear of losses but for fear of not making profits that could be made from taking higher levels of risk.
If you have business experience in insurance brokerage, I suggest you consider financial business opportunities here. I also suggest you consider other locations to settle than Auckland: avoid the traffic congestion and settle somewhere with the lifestyle you like, e.g. a beach city like Tauranga or an inland city like Hamilton (my city), both are less than 2 hours drive to Auckland airport, with plenty of smaller beach or inland towns in between if you're looking for a smaller place.
Just let me know if you'd like to be in contact.
Post a Comment