Source: LAFFERTY 1000
Western banks "outclassed" by banks in emerging marketsCOUNTRY FOCUS: CZECH REPUBLIC • KOMERCNI RATED THE BEST BANK IN CZECH REPUBLIC • IT IS ALSO ONE OF THE TOP 100 BANKS IN THE LAFFERTY 1000 • DIGITAL TRANSFORMATION IS WELL-ADVANCED AT KOMERCNI”— LAFFERTY 1000LONDON, UK , July 1, 2020 /EINPresswire.com/ -- Banks from Western Europe, North America and Australia are now clearly outclassed by banks in emerging markets in Asia, Africa, Eastern Europe and Latin America. This is the striking conclusion of pioneering research for THE STATEMENT magazine across 1000 quoted banks in over 100 countries. The best-rated banks are found in South Africa, Saudi Arabia. Singapore, Indonesia, Philippines, India, Turkey, Poland, Serbia, Slovenia and Mexico.
The research is generated from the LAFFERTY 1000 global banking database, which scores the one thousand banks for quality across 21 metrics and rates them from 1-star for the weakest to 5-stars for the best. Other findings include:
• Only 5 of the 1000 banks receive 5-star ratings and all are based in emerging markets
• With three exceptions, the mainly universal banking giants of Europe, North America, Japan and China that are designated as “globally significant” by the Bank for International Settlements (BIS) are rated from poor to average at best.
• Italy’s UniCredit comes bottom of the group, with a 1-star rating.
These findings contradict the view, long held in the financial industry that the UK and the US are the leading countries for industry achievement.
COUNTRY FOCUS: CZECH REPUBLIC
• KOMERCNI RATED THE BEST BANK IN CZECH REPUBLIC
• IT IS ALSO ONE FO THE TOP 100 BANKS IN THE LAFFERTY 1000 GLOBAL BANKING DATABASE
• DIGITAL TRANSFORMATION IS WELL-ADVANCED AT KOMERCNI
THE STATEMENT is a new Lafferty Group digital banking magazine. It is being established at the height of the economic, financial and human crises caused by the global coronavirus pandemic in order to help progressive banks and bankers find a new way ahead for the industry.
The magazine takes as its starting point the current state of 1000 of the world’s largest quoted banks and rates each of them for their quality and sustainability using 21 metrics – from financial performance to how they treat a range of stakeholders including staff, customers, the unbanked, regulators, the environment – and not least shareholders.
The bank quality rating system on which the database is anchored uses a heuristic methodology to analyse the signals that banks are sending out in their annual reports – intentionally or otherwise – and combines them to score the overall bank. It uses the annual report because of its unique status as the primary vehicle for management of a bank to communicate and account to shareholders and other stakeholders.
Michael Lafferty, Chief Executive of Lafferty Group said:
“Banks from emerging markets are now setting the pace in world banking. They are more focused and unfettered by the mistakes that have done so much damage to Western banks. These mistakes include a misguided love affair with universal banking and the destructive ideology of shareholder value”.
Alexander Erickson, LAFFERTY 1000 Research & Database Manager added:
“Emerging market banks are becoming key and prominent players in banking, particularly in areas such as financial inclusion, diversity and climate risk policy. This has opened up new doors and altered the course of research and data analytics.”
Jan Juchelka, CEO of Komerční banka commented:
“I am really happy that the steps we took as part of transforming our bank prior to the onset of the pandemic are helping us adapt quickly to new conditions today. I am really honoured to see that the results and effect of the transformation of Komerční banka were noted on an international scale. The results of a Lafferty survey demonstrate that the global structure of the banking world is changing dynamically and financial institutions from developing markets are becoming the key players in the sector. In particular in areas such as financial inclusion, diversity and the efforts towards reducing the risk of climate change. Komerční Banka aspires to a leading role in these areas.”
For further information please contact:
Michael Lafferty FCA / Lafferty Group
Chief Executive and Chairman
Alexander Erickson / LAFFERTY 1000 Global Banking Database
Research & Database Manager
Dr Ronan Lynch / THE STATEMENT Magazine
Editorial & Research Director
Claire Cotgrove / Lafferty Group
ABOUT LAFFERTY GROUP
Lafferty Group provides advisory, research and education services to the banking industry worldwide.
Our activities include:
• Councils - whose members meet regularly to share best practices and brainstorm the future of banking
• Research programmes - research services in SME banking and fintech, cards and digital finance and mobile wallets
• Benchmarking and global best practices – the Lafferty 1000 database rates 1000 quoted banks from over 100 countries across 21 metrics
• Banking education – Lafferty Banking Institute provides professional banking education to retail bankers worldwide.
• Advisory – projects typically range across the fields of consumer banking, payments. digital sovereignty, banking and postal banking partnerships, IPOs, and bank quality ratings.
Established in 1981 by Michael Lafferty FCA, a former banking and accounting correspondent of the Financial Times. Lafferty Group is a former winner of the Queens Award for Export Achievement. It has also been granted Institute status in recognition of its pioneering work in banking research and education.
For more information please visit www.lafferty.com