Economics

The Largest Banks In The World

Chinese banks dominate the scene with the Industrial and Commercial Bank of China being the biggest bank in the world.

A bank’s profitability and liquidity depend on the amount of assets it holds. Assets play a significant role in determining the size of the bank. Assets also show the worth of a bank and include both liquid wealth and property owned by the bank that can be converted to cash. Assets are divided into two types, current assets, and non-current assets. The basic accounting equation for calculating asset is liabilities plus stakeholders’ equity. The ranking of banks is on the value of assets they own.

The Giants Of The Banking World

Industrial and Commercial Bank of China (ICBC)

Industrial and Commercial Bank of China is an international financial company and by far the largest bank in the world on asset value. ICBC is a government owned bank which initially began as a limited company in 1984. As of 2017 the bank has an asset value of US$ 3,473.09 billion. In 2006 ICBC was listed in the stock market in both Shanghai and Hong Kong. The bank has continued to grow to form a strong customer base, market competitiveness, market innovation, and a diversified business structure. The ICBC has a total of 490 million retail customers and 5,320 thousand corporate customers with its branches spread across Asia, Europe, America, and Oceania.

China Construction Bank Corporation (CCB)

The China Construction Bank Corporation was founded in 1954 and is the second largest bank in the world on asset value. Initially called People’s Construction Bank of China, the bank is also the 6th largest company worldwide. CCB has 13,629 branches locally in China and several branches in different parts of the world. CCB has a total asset of US$3,016.45 billion.

Agricultural Bank of China (ABC)

The ABC was established in 1951 and comes as the third largest bank in the world. It has its central operations in Beijing with several branches spread across China, Tokyo, Hong Kong, London, New York, Frankfurt, Sydney, Singapore, and Seoul. In total ABC has 24,000 branches and retail customers totaling 320 million while the corporate clients total 2.7 million. In 2010 ABC went public, fetching the biggest IPO in the world. In 2015 ABC was ranked third by Forbes as the most valuable company with an asset value of $ 2,815.92 billion.

The Future Of Banking Operations

The biggest financial institutions have evolved into complex institutions offering a broad range of financial services to international markets, controlling trillions of dollars in both cash and assets. With innovation and technology, banks are identifying new business and markets and developing customized products and services. With globalization, minimal regulations, consolidation, and diversification the banking industry is likely to become even more complex in coming years.

Below is a list of the world's largest banks. All data comes from the S&P Global Intelligence Report.

The Biggest Banks In The World

RankBank Total Assets (USD Billions) Headquarters
1Industrial and Commercial Bank of China3,473.09Beijing, China
2China Construction Bank Corporation3,016.45Beijing, China
3Agricultural Bank of China2,815.92Beijing, China
4Mitsubishi UFJ Financial Group2,626.29Tokyo, Japan
5Bank of China2,611.43Beijing, China
6JPMorgan Chase & Co. 2,500.00New York, United States
7HSBC Holdings PLC2,374.15London, United Kingdom
8BNP Paribas2,189.27Paris, France
9Bank of America2,187.70Charlotte, United States
10Wells Fargo & Co. 1,930.12San Francisco, United States
11Credit Agricole1,816.97Montrouge, France
12Citigroup Inc.1,790.68New York, United States
13Mizuho Financial Group1,752.19Tokyo, Japan
14Deutsche Bank1,675.96Frankfurt, Germany
15Sumitomo Mitsui Financial Group1,648.66Tokyo, Japan
16Barclays PLC1,495.84London, United Kingdom
17Societe Generale1,453.91Paris, France
18Banco Santander1,413.68Santander, Spain
19Groupe BPCE1,302.72Paris, France
20Bank of Communications 1,209.18Shanghai, China

More in Economics