No doubt, that the bank as a financial institution plays a vital role in our life and the country’s economy within its role in funding so, banks represent the basic credit cycle, which runs the economic wheel of the country. Understanding the business operations of banks and their participation in this cycle is critical for policy makers. This in turn reflects the important role of banks in economy which eventually benefits people as customer deposits provide the funding to make loans. The loans enable customers of all types of businesses, individuals, governments, nonprofits and more to grow and invest, creating more jobs, which lead to economic growth and prosperity. The wealth that is built through prosperity returns to banks as deposits and the cycle continues. From this point, it is showed that a good bank is the bank which significantly affects the economy and contributes in its growth. So, there are many criteria which make a bank one of the best banks in any country.
Ranking America’s 100 largest banks
Rounding out the top five banks are Bank of the Ozarks, First Merchants and East West Bancorp, according to their performance and size as following;
America’s four banking titans have 8.7$ trillion in assets. By comparison, the fifth-biggest bank, U.S. Bancorp, is only a quarter size of fourth-ranked Citigroup. The performance of the Big Four was merged on America’s Best Banks 2018. The country’s biggest bank, JPMorgan Chase with totally 2.6 trillion $ in assets, led the way for the second straight year at 40th, up from No. 57 last year. Citigroup ranked 69th, followed by Wells Fargo at 74 and Bank of America at 85. Wall Street values Citigroup the lowest, with stock deliberation at just 0.9 times book value.
Wells Fargo was the only one of the Big Four banks to fall in the rankings (it ranked 63rd in 2017). Wells is still continue to struggle with the fallout from its fake accounts scandal, with an additional 1.4 million fake accounts Discovered in August. One shinning note for the troubled bank: It is expected to be the biggest beneficiary of the new tax law, with earnings up 18% since most of its earnings are in the U.S., according to a Goldman Sachs analysis.
Santa Ana, California-based Bank of California is last this year among the 100 banks. It descends near the bottom in varied categories, including returns on average assets (0.7%), efficiency ratio (86%), operating revenue growth (-18%) and reserves as a percent nonperforming assets (51%).
The common standards of best banks
There are many standards which measure the performance of banks to determine according these standards the best bank among the other banks in any country as following;
It represents how the banks have improved their internal processes, what new systems and instruments they have implemented to adapt to the new global regulatory environment, and whether they desire to exceed the required compliance to restore the confidence of investors and the public.
Responsible lending and investments
To determine the quality of environmental and social risk evaluations in investment and lending operations as well as the range of transactions covered by these standards. Specifically, we were interested in the merging of climate change and water risks into the due diligence process our engagement with the banks was supplemented by specific research done by Sustainalytics evaluating the existence and the strength of banks’ responsible investment policies and processes.
The objective was to understand whether the banks surveyed have become more transparent and accountable in the wake of the enormous public anger over excessive corporate salaries and bonuses tied primarily to short term gains and stock performance. Issues such as the calculation of base pay and bonuses, stock ownership retention rules and pension and retirement benefits were examined closely in the analysis of survey responses.
To survey the banks’ disclosure on political donations and lobbying activities including the accessibility of information on indirect spending through trade associations and other lobbying groups.