If you're searching for a reliable financial institution to entrust your money, Europe's finest options await you. Discover the elite league of Europe's top 50 safest banks, catering to both individual investors and large businesses alike. With their unwavering commitment to security and trust, these banks guarantee peace of mind for your financial endeavours.

In this comprehensive article, we delve into the meticulous research to unveil Europe's top 50 safest banks of 2023. By examining their rankings, we aim to equip you with valuable insights for selecting the ideal bank to suit your unique requirements. Furthermore, we shed light on the essential factors that contribute to a bank's overall security, empowering you to make informed decisions about safeguarding your assets.

Key Factors for Safety and Trustworthiness

In today's financial landscape, ensuring the security of your finances is paramount, regardless of whether you choose an online bank or a traditional brick-and-mortar institution. When evaluating the safety of a bank, there are several key factors to consider that contribute to its overall security and trustworthiness.

Financial Stability

Financial stability serves as the bedrock of a secure bank. It entails the presence of a strong balance sheet and ample liquidity, enabling the bank to withstand economic downturns or unexpected challenges while still being able to meet its obligations to customers. During times of financial crisis, the stability of a bank is put to the test, often revealing the prudence with which it manages its operations.

Regulation and Supervision

Banks operate under the purview of stringent regulations and supervision enforced by financial authorities. These regulatory bodies, such as the European Central Bank (ECB) in Europe or the Financial Conduct Authority (FCA) in the United Kingdom, play a crucial role in ensuring that banks adhere to sound practices and prioritise the protection of customer interests. 

Through ongoing oversight, they verify that banks maintain appropriate risk management frameworks, follow robust compliance procedures, and protect customers' bank accounts.

Deposit Guarantee Schemes

A fundamental element of bank security lies in the existence of deposit guarantee schemes. Within the European Union, all banks operate under deposit guarantee schemes, which provide a form of deposit insurance. In the unfortunate event of a bank's insolvency or any other circumstance where it is unable to release funds owed to depositors, these schemes safeguard customers by guaranteeing the repayment of their cash deposits.

Additional Considerations for Choosing a Secure Bank

In addition to the aforementioned factors, there are other essential aspects to consider when selecting a secure bank:

• Security Measures: Assess the bank's commitment to implementing robust security measures, such as multi-factor authentication, encryption protocols, and secure online banking platforms. These measures help protect customer accounts from unauthorised access and fraudulent activities.
• Reputation and History: Conduct thorough research on a bank's reputation and track record. Look for well-established institutions with a history of ethical practices and customer-centric services. Customer reviews and industry ratings can provide valuable insights into a bank's reliability and customer satisfaction levels.

• Transparency and Communication: Evaluate the bank's transparency in disclosing its policies, fees, and terms of service. Clear communication channels and readily available customer support contribute to a positive banking experience and foster trust between the bank and its customers.

• Diversification and Risk Management: Consider a bank's approach to risk management and diversification of its asset portfolio. Banks with well-diversified investments and sound risk management practices are better equipped to weather financial turbulence and protect customer funds.

• Technology and Innovation: Keep abreast of the bank's technological advancements and innovative services. A bank that embraces digital transformation and invests in cutting-edge technologies demonstrates a commitment to staying ahead of evolving security threats and providing convenient banking solutions without compromising safety.

Ensuring the Safety of European Banks

In today's financial landscape, ensuring the security of your finances is paramount, regardless of whether you choose an online bank or a traditional brick-and-mortar institution. When evaluating the safety of a bank, there are several key factors to consider that contribute to its overall security and trustworthiness.

Financial Stability

Financial stability serves as the bedrock of a secure bank. It entails the presence of a strong balance sheet and ample liquidity, enabling the bank to withstand economic downturns or unexpected challenges while still being able to meet its obligations to customers. During times of financial crisis, the stability of a bank is put to the test, often revealing the prudence with which it manages its operations.

Discovering Europe's Top 50 Safest Banks

Global Finance has compiled a list of the top 50 safest banks in Europe, offering customers a comprehensive analysis of the region's most secure financial institutions.

Below is the meticulously researched and highly regarded list of Europe's top 50 safest banks for 2023:

• KfW (Germany): KfW, the German government-owned development bank, secures the top position on the list. Renowned for its exceptional credit quality and robust financial position, KfW serves as a key driving force behind Germany's economic development.

• The Caucasus (Georgia, Armenia, and Azerbaijan)

The first countries on our list aren’t technically even in Europe; Georgia has an eastern European feel and aspires to join the European Union while almost nobody will claim Azerbaijan is part of Europe. Yet these countries’ desire to attract capital has made them easier to work with.

And if your definition of “easy” is a low deposit, banks in the Caucasus – the region east of Turkey and south of Russia – will open an account with as little as $0. Talk about the ultimate tunnel you can keep on hand without much effort, and then use later.

Georgia has long been our favourite because the two largest banks – TBC and Bank of Georgia – don’t require you to be a resident to open an account. Most of the rest, especially the foreign banks, either focus on specific customers or only want residents or citizens.

Both TBC and Bank of Georgia open retail accounts to anyone who walks in, although you may want a local attorney to help you ensure the process goes smoothly before you fly out. Both banks are also traded on the London Stock Exchange.

Americans will need to undergo FACTA checks, but most everyone else can open a bank account in Georgia in as little as 30 minutes. If you want priority service, you can open an account with TBC Status or Bank of Georgia’s Solo program, which has dedicated and luxurious branches and requires little deposits (requirements change from time to time).

Georgian banks no longer pay competitive interest rates on dollars, euros, or pounds, but pay 11-12% on Georgian Laris which have performed well against the dollar as of late.

Armenian banks have become more difficult to manage, generally requiring you hold a residence permit. If you are of Armenian descent, you are entitled to Armenian citizenship which may fulfil that requirement and give you a backup passport; if not, you can start a company, hire one employee or invest in bonds as a way to get residence and therefore open a bank account.

The benefit of Armenia is higher deposit insurance in government coverage, Armenia’s is several times larger and protects a mid-five figure sum depending on which currency you bank in. Armenian banks still pay decent interest rates on currencies like the US dollar, as well as excellent rates on their own Armenian dram which are quite well against the dollar in recent years.

• Balkans (Serbia, Montenegro, Albania)

The Balkans used to be easier to bank in, but are still possible. As is the case with many things in this region formerly called Yugoslavia, who you know matters. You will see more regional and pan-European banks in the Balkans which may be more assuring to some new offshore banking clients, since Caucasian banks are mostly local only.

Serbia is the largest of the western Balkan countries and banks like Raiffeisen or OTP may be willing to open an account using a hotel or Airbnb as an address. Some city centre branches of these banks may have dedicated people who speak English and maintain accounts for foreigners. Keep in mind that interest rates in Serbia are generally low, but the country has a tried-and-true deposit insurance plan.

Montenegro is more touristy, with some beautiful coastline just south of Croatia. Opening a bank account here used to be easier, but most larger banks don’t want foreigners now. As in some other European countries, you can bypass these issues by obtaining a residence permit which requires you to buy basically any property or start a company and pay yourself a monthly pittance. We help our clients obtain residence in Montenegro and elsewhere.

One hack for banking in Montenegro could be walking into a smaller bank in a tourist centre like Porto Montenegro. Our founder’s first account was opened in Budva which may also be possible. Try smaller banks where foreigners hang out.

Albania and North Macedonia are perhaps easier and they claim to be explicitly open to foreigners, but you’ll still want a reason for having the account. “I don’t trust banks in the United States” probably won’t sit well with a banker who thinks their country is troubled and sees the west as some panacea. Even if they’re wrong, they may not open your account.

• Portugal

As the first entrant on this list in the European Union, Portugal may be more attractive to those who don’t mind greater regulations in exchange for greater security. EU member country banks must insure your funds.

While you may not be able to walk in off the street, advance planning with Portuguese banks can allow you to open an account. There are plenty of retail banks with four-figure minimums, as well as a few priority banks with six-figure minimums. Like many European banks, many have asked us not to explicitly name them publicly. 

The easiest way to bank in Portugal is to get a residence permit there whether the country’s Golden Visa– which has been as on-again, off-again as Ben and Jennifer – or a less expensive self-sufficient residence. Sometimes you can get a bank account on the basis of considering obtaining residence, as in planning ahead for applying for immigration status. Obviously we would always suggest you are honest with the bank but if you say you’re exploring Portugal and deciding on whether to invest there, that can help.

• Hungary

Like Portugal, Hungary can open retail accounts for small depositors on a somewhat random basis. If you’re willing to fly to Budapest and can demonstrate some interest or connection to the country, they may be open to working with you. Our advice is to never view banking in a foreign country as you would in your own: outside of places like the Caucasus, simply walking in and saying “I want a bank account” isn’t going to work to overly conservative bankers. You either need to know someone, or plan ahead with the bank before you travel.

• Zuercher Kantonalbank (Switzerland): With a strong capital base and a long-standing reputation for stability, Zuercher Kantonalbank takes the second spot. This Swiss bank is known for its conservative risk management practices and unwavering commitment to its customers.

• BNG Bank (Netherlands): BNG Bank, a Dutch financial institution, holds the third position. As a specialised bank serving the public sector, BNG Bank consistently demonstrates a high level of solvency and is deeply rooted in supporting local governments and institutions.

• Landwirtschaftliche Rentenbank (Germany): Germany's Landwirtschaftliche Rentenbank ranks fourth on the list. Focusing on agricultural financing, this public law institution plays a vital role in supporting the country's farming sector and rural development.

• Nederlandse Waterschapsbank (Netherlands): The fifth safest bank in Europe, Nederlandse Waterschapsbank, is a Dutch institution that specialises in providing financial services to water authorities. Its robust financial position and extensive experience in this niche sector ensure stability and security.

Continuing the list, here are the banks securing positions from 6 to 50

• L-Bank (Germany)
• Kommunalbanken (Norway)
• NRW.BANK (Germany)
• Swedish Export Credit Corporation (Sweden)
• Caisse des Dépôts et Consignations (France)
• Svenska Handelsbanken (Sweden)
• Banque et Caisse d’Epargne de l’Etat (Luxembourg)
• Banque Cantonale Vaudoise (Switzerland)
• DZ BANK (Germany)
• Deutsche Apotheker- und Ärztebank (Germany)
• DNB Bank (Norway)
• Banque Pictet & Cie (Switzerland)
• SFIL (France)
• Nordea Bank (Finland)
• SEB (Sweden)
• Sparkassen-Finanzgruppe (Germany)
• UBS AG (Switzerland)
• Rabobank (Netherlands)
• OP Corporate Bank (Finland)
• BNP Paribas (France)
• Credit Agricole (France)
• Swedbank (Sweden)
• HSBC Continental Europe (France)
• LGT Bank (Liechtenstein)
• Banque Federative du Credit Mutuel (France)
• BPCE (France)
• BNP Paribas Fortis (Belgium)
• BGL BNP Paribas (Luxembourg)
• SpareBank 1 Nord-Norge (Norway)
• ABN AMRO Bank (Netherlands)
• Nationwide Building Society (United Kingdom)
• Nykredit Realkredit (Danmark)
• Komercni Banka (Czech Republic)
• SBAB Bank (Sweden)
• ING Bank Slaski (Poland)
• Lansforsakringar Bank (Sweden)
• AXA Banque (France)
• Societe Generale (France)
• Erste Group Bank (Austria)
• HSBC Holdings (United Kingdom)
• Banco Santander (Spain)
• Danske Bank (Denmark)
• Belfius Bank (Belgium)
• Jyske Bank (Denmark)
• SpareBank 1 SR-Bank (Norway)

Each bank on this list has demonstrated exemplary financial strength, effective risk management strategies, and resilience in the face of economic challenges. Customers and investors can rely on these institutions for secure banking services and peace of mind.

Factors to Consider for Personalized Choice

Choosing the right bank in Europe requires careful consideration of several factors that can significantly impact your banking experience. From the bank's location and financial stability to its range of services and customer service quality, each aspect plays a crucial role in determining the optimal bank for your personalised needs. Below, we explore these factors in detail to help you make an informed decision.

1. Size

The size of a bank can have both positive and negative implications for customers. Larger banks often offer a broader range of investment opportunities and facilities for foreign transactions and investments. They may have a global presence with subsidiaries or branches in multiple countries, enabling smoother international banking experiences.

On the other hand, smaller banks can provide a more tailored and personalised banking experience. With a focus on individual account holders, these banks often offer exceptional customer service and a more hands-on approach to managing your finances. If you prefer a more personalised touch, a smaller bank might be the right choice for you.

2. Financial Stability

One of the most critical factors to consider is the financial stability of the bank. A bank's ability to maintain a solid balance sheet and safeguard clients' funds during economic fluctuations is vital. While all banks aim to secure their customers' deposits, not all banks possess the same level of financial stability.

Researching a bank's track record and assessing its financial performance over time can give you valuable insights into its stability. Look for banks that have consistently demonstrated their ability to weather economic downturns and protect their customers' funds. Opting for a financially stable bank ensures that your money will be secure, regardless of the economic climate.

3. Range of Services

While all banks provide basic financial services, the breadth and quality of additional services can vary significantly. Beyond traditional banking activities, such as accepting deposits and issuing funds, banks differentiate themselves through various service offerings.

Consider the specific services that matter to you, such as mobile banking apps, fast-track debit card replacements, or specialised investment options. Some banks excel in providing innovative digital banking experiences, while others may offer extensive investment portfolios. Identify your banking needs and prioritise banks that align with those requirements.

For example, Monza, considered one of the best online banks in Europe, offers a highly rated digital banking user experience. With its robust security measures and user-friendly interface, Monza provides a secure and convenient online banking experience.

4. Customer Service

The level of customer service provided by a bank is crucial, especially when you need assistance or encounter issues with your account. While opening a bank account, many people overlook the importance of aftercare and ongoing support.

Evaluate a bank's customer service division based on factors such as responsiveness, availability, and expertise. A bank with a well-structured and efficient customer service department is better equipped to handle any concerns or queries that may arise during your banking journey.

Deutsche Bank in Germany, for instance, is renowned for its excellent customer service. With branches across major European cities, the bank offers 24/7 customer support, ensuring that assistance is readily available whenever you need it.

5. Location

The location of a bank can have significant implications for your banking experience, not only in terms of safety but also potential savings opportunities. Different countries may offer unique banking programs or tax regimes that can optimise your financial situation.

For individuals looking to open offshore bank accounts and benefit from tax optimization and savings, programs like Portugal's Non-Habitual Resident (NHR) tax regime present attractive options. Under Portugal's NHR tax regime, you can open an account with a reputable Portuguese national bank, such as Millennium BCP. This allows you to enjoy several tax-saving benefits, including special personal income tax treatment over ten years, no minimum stay requirements, and free remittance of funds to Portugal.

Considering the location of a bank becomes crucial when exploring opportunities for international banking, tax optimization, or specific financial advantages offered by certain countries.

By carefully evaluating these factors – size, financial stability, range of services, customer service, and location – you can select the optimal European bank that caters to your personalised needs. Prioritising these aspects ensures that you have a seamless and satisfying banking experience while meeting your specific financial goals.

Key Takeaways on Bank Safety and Selection in Europe

Are you considering changing banks as an EU citizen or opening an offshore bank account as a foreigner? European banks offer a wide range of options and are renowned for their safety and reliability.

One of the key advantages of European online banks is their commitment to rigorous due diligence and compliance checks. Unlike many online banks, European institutions adhere to strict standards to ensure transparency and integrity. These checks are conducted regularly to guarantee that activities such as charging monthly maintenance fees are fair and transparent. Moreover, European banks prioritise their customers' interests by providing easy and fast access to funds and adopting practices that align with their customers' needs.

Rest assured that when you choose a European online bank, you can have peace of mind knowing that your financial transactions are being conducted by an institution that upholds high standards of trust and security.

FAQ

Which bank is considered the safest in Europe?

KfW bank in Germany is recognized as the safest bank in Europe. It holds the top position among the top 50 safest banks in Europe according to the US finance magazine Global Finance.

Which European country has the most secure banks?

Germany is the European country with the most secure banks. It is home to four of the top ten most secure banks in Europe, namely KfW, Landwirtschaftliche Rentenbank, L-Bank, and NRW.BANK.

Which European bank is regarded as the most secure?

The most secure European bank is KfW, located in Germany. It holds the highest rank among the top 50 safest banks in Europe, as determined by the US finance magazine Global Finance. KfW is one of the largest banks in Europe and has consistently topped the list of the most stable EU banks for twelve consecutive years.

What is considered the best bank in Europe?

KfW, based in Germany, is widely regarded as the best bank in Europe. It secured the number one spot in the 2023 list of the 50 safest banks in Europe. KfW's exceptional security standing extends beyond Europe, as it has been ranked as the world's safest bank for twelve consecutive years by the US finance magazine Global Finance. This recognition firmly establishes KfW as the leading bank in terms of security.