Tuesday, October 23, 2012

Best Banks to Invest in America




Thinking of investing in U.S. Banks, please review the top 10 banks with solid financial standing.

American financial institutions have taken a grievous hit to their reputation in recent years. As a result, the trust and admiration of their stakeholders has grown disappearingly small.

There nine critical value factors that drive the reputation of financial institutions, and ranked the nation’s 10 largest bank holding companies in terms of each.

The drivers were weighted according to the importance each was given in the analysis. The top five drivers in terms of their influence on reputation:

Return on shareholder investment (ROI)
Corporate social responsibility
Transparency
Sustainability
Image

The other four drivers were perception of stability, innovation, leadership and stakeholder relationship.

“While it is no surprise that ROI shows up among the top drivers of financial institution reputation, more telling is that corporate social responsibility is the No. 2 driver, and sustainability No. 4. “This, of course, highlights our culture’s return to grass roots despite—or perhaps because of—the downturn in the economy. Values are viewed as being critical to organizational success and acceptance.”

The No. 3 driver would be financial institutions’ key to regaining trust as they strive to make reparations that allow them to grow as the economy recovers.

When rankings are reissued after the end of the second quarter, she said, shifts are likely, in particular the position of JPMorgan Chase, which has run into a rough patch in recent weeks.

Following are the 10 banks ranked by overall reputation based on nine value drivers. The institutions in the analysis were the largest bank holding companies based on assets as of March 31.
10. HSBC Bank










9. US Bancorp











8. Morgan Stanley Bank








7. The Bank of New York Mellon








6. MetLife Inc.








5. Goldman Sachs Investment Bank








4. Wells Fargo Bank










3. Citigroup Banking Corp










2. JPMorgan Chase Bank









1. Bank of America





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