China now has three of world’s top 5 banks

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China

Chinese banks now have three banks in the world’s top five banks, with ICBC in top spot for the third year in a row with US$248bn of Tier 1 capital at its disposal.

The report from The Banker said: “Chinese banks are powering ahead in the ranking but are not filling the gap left by the shrinking international banks.”

The global banking model has been on the retreat since the financial crisis due to a slower world economy and tighter regulatory control.

According to the report, ICBC aims to have 10% of its assets outside China in five years’ time.

The survey calls this “small in comparison with the global banks in their heyday”.

The UK’s largest bank HSBC has clung on to a place in the world’s top 10 banks, falling to ninth place from fifth last year. HSBC was the biggest bank in the world in 2008.

Brian Caplen, editor of The Banker, said: “At one time the ambition of the largest banks was to have operations in all parts of the world and across all business sectors. Now they are focusing on a few areas in a bid to restore profitability. We may have seen the end of the global bank.”

The largest three banks in the world are China’s ICBC, China Construction Bank with $202bn of Tier 1 capital and America’s JPMorgan with $187bn of Tier 1 capital.

The top 10 world banks ranked by their Tier 1 capital

  • ICBC – China – $248bn
  • China Construction Bank – China – $202bn
  • JPMorgan – US – $187bn
  • Bank of China – China – $184bn
  • Bank of America – US – $169bn
  • Agricultural Bank of China – China – $$168bn
  • Citigroup – US – $167bn
  • Wells Fargo & Co – US – $155bn
  • HSBC – UK – $153bn
  • Mitsubishi – Japan – $118bn
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