How Is The Best International Bank Determined

Determining the best international bank for your needs requires taking into account a variety of factors.  Choosing to bank outside of the United States or in a domestic branch of a foreign bank requires you know something about the country’s banking laws, compliance with international banking laws and standards and their ability to thwart illegal financing activities, such as drug trafficking and terrorism.

Banks Located in Strong Economies

Foreign banks based in countries that have strong banking laws tend to conform to the standards set for banks based in the United States.  These banks tend to be regulated in a way that reduces systemic risk, which is the risk that a bank failure will contribute to an economic downturn or catastrophic.  These banks have stringent capital requirements and are not that much distinguishable from U.S. banks.

Banks Located in Emerging Markets

International banks that are in emerging economies such as Russia, China, Brazil and India, may have more risk as these countries are still in the process of developing strong programs for regulatory oversight and compliance.  At a minimum, the best international banks should have in place anti-money laundering programs and freeze assets of certain individuals who are deemed to be dangerous.