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German bank ratings

  • 19-01-2012 12:28am
    #1
    The Irish Riddler
    Registered Users, Registered Users 2 Posts: 221 ✭✭


    With all the uncertainty I am going to move my savings into a German savings account.

    Security of funds is the top priority.

    Where can I get a list of German banks and their ratings?


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,606 Mod ✭✭✭✭Jim2007


    The most important measure of a bank's strength is it's T1 ratio, which you can find in their annual report or on the European Banking Authority's website, if they were included in the stress tests last year. Ratio's of 5% to about 7% are the norm, but Basle III would like to see them much higher at around 16%.

    How important is this? Very, last year UBS (Swiss Bank) got hit for €2.5b as a result of trader misconduct, it had no real impact on the bank because it is well financed, with a T1 ratio of 16%!

    Now here is the real kicker, if you look at the EBA report you will see that at least two of the Irish banks are right up there with the Swiss banks when it comes to measures of financial strength. So think about this, how can moving your savings to a weaker bank be the safe option???

    And another thing, given all the foreign deposits in German banks today, could the German Government really honour the bank guarantee in the event of a melt down???

    I would suggest you think about a diversification plan, rather than just shipping money around...


  • #3
    The Irish Riddler
    Registered Users, Registered Users 2 Posts: 221 ✭✭The Irish Riddler


    The only thing I'm interested in is protecting my savings while avoiding currency speculation so it seems as if Germany, as the strongest economy in the EU would be the best bet.

    I don't want to buy gold, swiss francs, dollars, bank of ireland shares, ect, ect. I just want to be confident my money will have the same purchasing power this time next year.


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