Countries With the Most Advanced Banking Systems

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Due to recent economic and financial shifts, banking systems across the globe have seen a change, with countries taking measures to ensure their operations remain secure. 

Below is a compilation of countries with the most advanced banking systems in the world based on parameters such as their performance and buffers set against economic and financial shocks. 

1. Luxembourg

Known for its transparent regulatory infrastructure and ability to provide premium services to both institutional and private investors, Luxembourg tops the list as the country with the best banking system in the world. 

The country offers banking services to local parties and many international clients, with more than 93% of its 120 banks belonging to non-resident entities. As of 2021, Luxembourg’s banking sector was at least 12 times larger than the country’s national GDP. The country is also home to what is considered the world’s safest bank. 

2. Jordan 

Seeing as Jordan’s financial sector is almost entirely dominated by banks, the fact that it ranks second comes as no surprise. According to the Global Economy Ranking system, Jordan boasts the second-best banking system, scoring 50.11 points. 

The banking system is built on a solid financial design that almost guarantees full recovery in case a global stagflation were to occur. One of the country’s most significant advantages is that banks can withstand heavy liquidity pressures that might happen from both internal and external factors since they all have high liquidity. 

3. New Zealand

Even though New Zealand’s banking landscape is primarily controlled by four major banks, all of which are Australian-owned, this country’s banking system runs efficiently to deliver high turnover and security for clients. The country has stringent minimum standards that ensure banks are cushioned from unexpected failure or collapse. 

One of the factors that make the banking sector in New Zealand very efficient is that the government grants full autonomy to both private and public owners to run their banks as they see fit, so long as operations remain transparent to all parties.

4. Morocco

With Africa’s most significant banking footprint, Morocco boasts the best banking system in the region. The country has more than 85 financial institutions, making it rife with a high-competition terrain where banking and money management are concerned. 

The banking system in Morocco is based mainly on policies set and closely controlled by the country’s Central Bank. Even though it is allocated freely, credit remains heavily regulated, with the Central Bank indirectly monitoring both the volume of credit and interest rates imposed on the same. 

5. Panama

After the banking system in Panama was reformed in 1998 to reduce corruption and money laundering, the banking sector in the country saw a massive boom in operations and total revenue. The country boasts the best banking system in the Americas. 

The Panamian Government is also known for encouraging international transactions and increasing foreign capital. The country’s banking system is very advanced, providing premium services to local and international entities. 

6. Canada

Known as the country with the most accessible banking system in the world, Canada joins the list of countries with the most advanced banking services. It is estimated that 99% of the country’s general populace owns and operates a bank account. 

Of these, many Canadians are active shareholders of Canadian banks through mutual and pension funds or direct share ownership. To ensure they remain secure in their operations, many banks in Canada have invested heavily in cyber security over the last decade, with an estimated $115 billion dedicated to security-based technology.

7. Australia

Like New Zealand, Australia’s banking sector is largely dominated by four banks. This small number makes the banking system easy to monitor and run, providing an efficient financial ecosystem for local and non-resident customers. 

The Australian government also regulates foreign banking bodies very tightly, ensuring the entire system remains sturdy while dramatically reducing the chance of collapse.

8. Singapore

With a highly elaborate banking system that controls an incredible amount of money, Singapore’s contribution to the global financial market makes it a banking leader in the Asia Pacific region. 

The country boasts at least 123 banking entities, of which 117 are foreign. The banking system in Singapore flourishes due to several factors, including high integrity and transparency, good tax and legal policies, stringent measures against money laundering and corruption, and sound political and economic environments. 

9. Switzerland

With 243 registered banks and financial institutions, Switzerland has a robust banking ecosystem. Just like players receive a bonus at, Swiss banking clients receive diverse services and rewards.  

However, one of the most significant factors that set the Swiss banking system apart is its ability to specialize and offer tailor-made services to cater to specific customers from all around the globe. 

The country has delivered asset management, private banking, and other such services to clients that deposit copious amounts of money at any given time, all while offering fool-proof security. As of 2018, the Swiss Banking ecosystem controlled USD 6.8 trillion. 

10. Hong Kong

Despite not being a country, Hong Kong makes the list of places with the most advanced banking systems in the world due to its thriving banking sector. It is home to 79 of the world’s top 100 banks; of these, 29 have their headquarters in various regions of this Chinese administrative region. 

The success of the banking system in Hong Kong is credited to an elaborate ecosystem that provides efficiency, stability, and security to clients.