List of 7 Largest Banks in the World, China Dominates

Banks are one of the oldest businesses in the world. The banking business is also often considered the most profitable business globally. That is why, the world's largest banks are included in the list of the most profitable companies globally.

The list of the world's largest banks has astounding assets, reaching hundreds of trillions of US dollars. Banking is also a very dynamic industry.

The banking industry today has undergone major changes and is increasingly competitive. Banks are one of the first businesses to implement any technological change.

The following are the 7 largest banks in the world based on total assets as quoted from the Forex Market Sentiment Indocators (FXSSI) survey agency, Friday (4/5/2021):

1. Industrial and Commercial Bank of China (ICBC)

Industrial and Commercial Bank of China or commonly known as ICBC is the record holder as the largest bank in Asia as well as the largest bank in the world in terms of assets.

The ICBC logo, which is identical to the old red Chinese coins, is very easy to find in big cities around the world. This indicates, this bank's operations reach globally in many countries.

ICBC itself is a state-owned bank owned by the Chinese government and has its head office in Peking. The assets of this bank with 460,000 employees in 2020 reached 4.91 trillion US dollars.

2. Agricultural Bank of China (ABoC)

Agricultural Bank of China (ABoC) is ranked second as the richest bank in the world. Initially, this bank was founded by the Chinese communist government to finance various agricultural projects in the Mao Zedong era.

The ABoC then grew rapidly along with China's economic progress. Its funding is now not only focused on the agricultural sector, but extends to various fields.

The bank has 24,000 branch offices worldwide. The total assets of this bank reached 4 trillion US dollars.

3. China Construction Bank Corporation (CCB)

The list of the world's largest banks ranked third is occupied by China Construction Bank Corporation or China Construction Bank (CCB). Based on its latest financial reports, this bank has jumbo assets of 3.65 trillion US dollars.

The bank has around 14,000 spare offices, the largest in the world with 372,000 employees.

Since the last few years, this bank has been active in financing various infrastructure projects around the world, especially projects that have been collaborated by several countries with the Chinese government.

4. The Bank of China

Again, a bank from China occupies the top position in the list of the largest banks in the world. In fourth place, the position of the largest bank in the world is occupied by The Bank of China.

This bank is also listed as a state-owned bank for the Chinese government with a record asset ownership of US$3.62 trillion or slightly less than CCB's assets.

Despite losing in terms of assets compared to the 3 largest Chinese banks, The Bank of China is the oldest bank in China which was founded in 1912.

5. Mitsubishi UFJ Financial Group (MUFG)

Mitsubishi UFJ Financial Group is a Japanese bank that is the top challenger from the dominance of Chinese giant banks in the list of the world's largest banks. MUFG is the fifth largest bank in Asia.

MUFG is recorded to have total assets of 3.5 trillion US dollars. As the name implies, this bank is affiliated with the Japanese automotive giant, Mitsubishi Group.

MUFG itself is a merger of two Japanese financial giants, namely Bank of Tokyo Mitsubishi based in Chiyoda Tokyo with UFJ Bank from Osaka.

6. J.P. Morgan Chase

JP Morgan is the largest financial institution in the United States. Globally, JP Morgan Chase ranks sixth under the shadow of Chinese banks.

JP Morgan Chase assets now reach 3.24 trillion US dollars. The US financial giant's office is in Manhattan, New York.

Also read: List of 5 Most Expensive Japanese Company Brands

Interestingly, JP Morgan Chase is not only known as a bank. But also doubles as an investment institution, and is even touted as the largest investment management company globally.

7. HSBC Holdings

The list of the world's seventh largest banks is HSBC with a total of 2.95 trillion US dollars. This bank is listed as the largest bank in Europe.

HSBC is a bank based in London, England. However, HSBC actually started from Hong Kong and has been around since 1865.

Historically, HSCB was established by the UK to accommodate trade transactions from Hong Kong and Mainland China to European countries. Now, HSCB has become a world financial giant and has penetrated various financial services sectors.

Reference:

https://money.kompas.com/read/2021/03/05/003100726