World - U.K banks less safe than those in 3rd World

Hasan Suroor

LONDON: Confidence in British banks, once considered among the safest in the world, has plummeted so low as a result of the global economic crisis that they are now less safe than their more modest Third World counterparts, according to a survey by the World Economic Forum (WEF).

The survey, covering 134 countries, suggests it might be safer to put money in a bank in Gaborone, capital of Botswana, than a High Street bank in London. It places Britain below Botswana in terms of confidence in its banking system. Other countries whose banking system is rated safer than Britain’s include Namibia, Brazil, Chile, Senegal and Peru.

All are far ahead in rankings than Britain which has dropped from among the top five to 44th position. A senior WEF economist was reported as saying Botswana was one of the safest countries for investment. Another expert told The Times that, unlike in the West, banks in Botswana “haven’t been buying funny assets backed by dodgy mortgages.”

America, which has seen some of the biggest names in banking collapse in recent weeks, fares slightly better than Britain, but trails behind a number of Third World countries. Among the advanced economies, Japan comes off worst at 93rd position.