Transformation in the global banking sector

ranking 22/11/2018

We are witnessing a rapid transformation in the global banking sector: in Top-20 of global commercial banks by assets, first four places are held by Chinese banks (table 1). Until recently, it was difficult to imagine as the palm historically belonged exclusively to credit institutions in Western Europe, USA and partly Japan.

According to 2017 results, the total assets of the world's commercial banks amounted to 116,4 trillion USD, 33% or 3 7,9 trillion USD of total assets correspond to Top-20 banks.

As of today, the leader of banking sector is Industrial & Commercial Bank of China (The) – ICBC with assets of 3.8 trillion USD. It is almost 1.8 times ahead of the largest US Bank in terms of assets - JPMorgan Chase Bank (5th place).

The largest bank in Eastern Europe is Sberbank of Russia, it takes the 54th place.

Table 1. Top-20 of global commercial banks by assets, 2017
Bank name Country Commercial banks total assets,
bln USD
1 Industrial & Commercial Bank of China (The) - ICBC China 3784
2 China Construction Bank Corporation Joint Stock Company China 3398
3 Agricultural Bank of China Limited China 3233
4 Bank of China Limited China 2990
5 JPMorgan Chase Bank, NA USA 2141
6 MUFG Bank Ltd Japan 1999
7 Japan Post Bank Co Ltd Japan 1984
8 Bank of America, National Association USA 1752
9 Wells Fargo Bank, NA USA 1747
10 Sumitomo Mitsui Banking Corporation Japan 1610
11 BNP Paribas France 1575
12 Mizuho Bank Ltd Japan 1546
13 Barclays Bank Plc United Kingdom 1520
14 Deutsche Bank AG Germany 1478
15 Societe Generale SA France 1418
16 Bank of Communications Co. Ltd China 1388
17 Citibank NA USA 1385
18 Hongkong and Shanghai Banking Corporation Limited (The) Hong Kong 1017
19 Toronto Dominion Bank Canada 996
20 Industrial Bank Co Ltd China 985
54 Sberbank Russia 402
  Total   116419

Almost 27% of total global bank assets correspond to Chinese banks - 30,9 trillion USD (picture 1). The USA share was reduced to 14% or 16,8 trillion USD. Another 15% are accumulated by banks in France (6,8 trillion USD), United Kingdom (6 trillion USD), Germany (2,9 trillion USD) and Spain (2,3 trillion USD).

Picture  1. Distribution of commercial banks total assets by countries, bln USD, 2017   Picture  1. Distribution of commercial banks total assets by countries, bln USD, 2017

Despite the fact that the assets are constantly increasing, the Russian banking sector takes the 17th place in the world. This is 1,2 trillion USD in absolute terms and it does not correspond to the size and development needs of the domestic economy and leads to a large dependence of domestic companies on international loans.