Since childhood, we have all been familiar with Sberbank, a bank that for more than 100 years has been the largest in Russia and the former CIS countries, both in terms of the number of employees (more than 260,000 people), branches (more than 13,000 branches) and the size of assets (more than 28 billion rubles).
But the size of Sberbank will seem ridiculous to you compared to the largest banks in the world, which will be discussed below.
In this article, we will look at the ten largest banks in the world, the size of which is calculated according to the classical scheme - the number of shares in circulation multiplied by their value, you get the market capitalization.
Industrial and Commercial Bank of China.
Industrial and Commercial Bank of China Ltd (Ticker 601398 Shanghai Stock Exchange).
Founded in 1984, Industrial and Commercial Bank of China has grown rapidly to become the world's largest bank based on assets. His current asset is a whopping 3.47 trillion. dollars, the number of shareholders is more than 500 thousand. ICBC focuses most of its efforts on industry (as its name actually suggests). They provide the majority of their loans to manufacturing, transportation, energy and retail sectors. This bank also shows no signs of slowing down. The company reported earnings growth of 3.3% for Q3 2021.
The headquarters is located in Beijing, China .
The number of employees is more than 460,000 people .
Credit Agricole
This is the second French bank on the list.
His assets amount to 1.91 trillion. dollars. This bank has experience working with farmers. It is part of a network of 39 French banks. The desire of the Third Republic to attract the votes of farmers by supporting small family farms led to the passage of a law on November 5, 1894, which allowed members of local cooperatives to create local Crédit Agricole .
Members assumed responsibility for the banks in accordance with the principles of cooperation. These local banks formed the foundation of the institutional "pyramid" created by Crédit Agricole.
Through determined efforts, local and regional banks have become more numerous. By the time of World War I, every French department had at least one regional bank. However, although they are allowed to provide long-term loans, these banks mainly provide short-term loans. Moreover, despite the growing influx of savings, the government continued to provide three-quarters of the original funds.
The First World War changed the way the institution operated and emphasized the need for a central bank to regulate smaller banks. Credit Agricole was intended to finance the development of land left fallow during the war, and then restore farms located in close proximity to the front line.
China Construction Bank – China Construction Bank (ticker 601939 Shanghai Stock Exchange).
The second largest bank in China is also the second largest in the world. China Construction Bank Corporation currently has $3.02 trillion in assets. One of the oldest banks in China, CCB was founded in 1954. In 2005, Bank of America wanted to expand its business in China. Thus, he acquired a 9% stake in CCB for a total of $3 billion. BOA subsequently needed to sell most of its stake in 2009 during the US financial crisis. In 2013, Bank of America sold its remaining position in CCB and concentrated its Asian operations in Hong Kong.
The headquarters is located in Beijing, China .
Number of employees: 330,000 people .
How coronavirus changed the banking industry in 2021
Many countries have been forced to impose quarantine to contain the spread of the coronavirus epidemic. Naturally, clients could no longer come to the bank themselves, and since they wanted to make purchases and make payments, banks had to quickly develop or modify mobile applications and online services.
According to financial experts, in the US alone in May, the number of payments through mobile applications increased by 84%, and the number of transactions carried out by Apple Pay increased 10 times.
Mitsubishi UFJ Financial Group - Mitsubishi UFJ Financial Group Inc ADR (ticker MUFG NYSE).
Mitsubishi, with assets of $2.63 trillion, is Japan's largest bank holding company/financial services group. As part of the Mitsubishi Corporation, the company provides a wide range of financial and investment services, including commercial banking, trust banking, and international financial asset management services. Taking into account all the awards received by MUFG, the sheer size of the bank, it was founded very recently only in 2005!
The headquarters is located in Tokyo, Japan .
Number of employees 106,000 people .
Basic banking services
The types of basic banking services in China do not differ from those common throughout the world. It's still:
- Consulting services;
- Financial flow management;
- Brokerage activities;
- Investments with issuers;
- Insurance.
Opening an account
The procedure for opening an account is as follows:
- Preparation of a package of documents;
- Filling out an application;
- Select a bank card;
- Connect mobile banking;
- Receiving a USB key or flash drive, with the help of which it becomes possible to perform banking transactions regardless of location.
Required documents
The standard package of documents includes:
- International passport;
- Chinese M or Z visa;
- Registration form;
- Resident's TIN;
- Mobile number from a Chinese telecom operator.
Bank of China - Bank of China (ticker 601988 Shanghai Stock Exchange).
Another Asian bank completes the top five. The Bank of China controls US$2.61 trillion in assets and was founded in 1912. Although the bank is no longer 100% state-owned, the largest shareholder is still the investment arm of the People's Republic of China. The Bank of China is the country's second largest lender. It currently has two locations in New York State.
The headquarters is located in Beijing, China .
Number of employees : 310,000 people .
JP Morgan Chase - JP Morgan Chase (ticker JPM NYSE).
JP Morgan Chase, one of two so-called "too big to fail" banks along with Bank of America, is the sixth largest bank in the world with assets of US$2.50 trillion. The company provides products and services to its clients in 100 countries, offering asset management, investment banking, private banking, treasury and securities services, and commercial banking. Of all the banks on our list, JP Morgan is the second relatively new bank, having only been founded in 2000.
The headquarters is in New York .
Number of employees : 245,000 people .
Bottom line
Obtaining absolute leadership in the world in terms of exports, imports and production capacity of the Celestial Empire was not enough. With the right economic policy, China was able not only to briefly jump to first place in the world ranking of the banking industry, but also to gain a foothold there. To gain a foothold so securely that the advantage of Chinese banks over Western ones will only increase in the coming years. We expect ICBC to be in the first place of the richest companies in the world for the seventh time in a row. The leaders of the countries of the Old World can only admire these results and learn from experience in order to be able to maintain the given pace.
HSBC Holdings PLC (ticker HSBC NYSE).
HSBC Bank has more than 460 banking branches throughout the United States, the majority of which (380) are located in New York State. The bank ranks seventh on our list of the largest banks with assets of $2.37 trillion. HSBC offers its 4 million customers access to global markets through personal financial services, private banking, retail banking, commercial banking and global banking and markets segments. HSBC was founded in British Hong Kong in 1865.
The headquarters is in London, UK .
Number of employees : 235,000 people .
The richest and most famous bankers in the world
Several indicators can indicate a banker's influence. First of all, it is necessary to pay attention to the economic significance of the banking institution in the country or region that it represents.
Among other achievements, it can be noted that the bank bears the name of its owner – Grupo Safra
The second point is participation in public and political life. The third meaning is the personal condition of its owner or manager.
Joseph Safra
The largest country in Latin America in our ranking is represented by Joseph Zafra. According to Forbes, the richest banker in generally not very economically prosperous Brazil, which is constantly shaken by social unrest and public protests, has 13.8 billion US dollars. Among other achievements, it can be noted that the bank bears the name of its owner - Grupo Safra. The only drawback is his venerable age, 73 years. Although Silvio Berlusconi has a lot to say about how one should enjoy money and the attention of women during this period of life.
Luis Carlos Sarmiento
Another Latino on the list of the richest and most influential bankers is Luis Carlos Sarmiento. The Colombian billionaire is already 79 years old, but he is actively involved in charitable activities - thanks to his financial assistance, 400 Colombian families affected by landslides have again found housing and family comfort. The Spanish name of the bank, Grupo Aval Acciones y Valores, which is feasible for the Russian language, is complemented by a fortune of 12.4 billion US dollars.
Peter Kellner
Czech Petr Kellner can tell you how to go from an office equipment salesman to one of the richest bankers in the Old World. And although the name of his banking institution does not sound as proud as its Spanish counterparts, and contains only three Latin letters PPF, it was able to bring its owner $8.2 billion. At 47 years old, these funds can be put to very good use.
Suleiman Al Rajhi from Saudi Arabia who, at the age of 92, continues to be a true role model for any man.
Suleiman Al Rajhi
Favorable climatic conditions and traditional Islam contribute not only to the birth of 23 children and longevity, but also to financial well-being. The best example is Sulaiman Al Rajhi from Saudi Arabia, who at the age of 92 continues to be a true role model for any man and has 5.9 billion US dollars in his accounts in the registered Al Rajhi Bank. A good amount to support so many heirs.
Bruno Schroeder
Some bankers love horses, others prefer to raise pigs. Among them, the most significant figure is Bruno Schroeder from Great Britain, who also enjoys flying a private jet, which he owns with Schroders Bank and 3.4 billion US dollars. And all this at 79 years old.
Andre Estevez
The third Brazilian in our ranking, the most extraordinary, began his successful financial career Andre Esteves as an IT employee at BTG Bank. Today he is the owner of this bank, which has been renamed BTG Pactual. Another achievement is age. Andre is the youngest banker in our ranking, with 3 billion US dollars at 43 years old. Unfortunately, nothing is known about hobbies. Most likely, he is a fan of computer games - his primary specialty obliges him.
BNP Paribas (ticker BNP Euronext).
This French bank ranks 8th with assets of $2.19 trillion. BNP is one of the largest global banking networks in the world, operating in 75 countries. BNP has four domestic retail banking markets located in France, Italy, Belgium and Luxembourg. In April 2009, as a result of its 75% purchase of BNP Fortis Bank, the Belgian bank became the largest deposit holder in the eurozone. BNP Paribas was founded back in 1848. Its main profitability comes from retail banking. More than three-quarters of its revenue comes from servicing client accounts.
The headquarters is located in Paris, France .
Number of employees: 190,000 people .
Lending to foreigners
Another pressing issue concerns how banks in China work with foreign borrowers. In order for a representative of another country to take out a loan here, he needs to find a guarantor among Chinese citizens.
In theory, loans from Chinese banks are available to all foreign legal entities and individuals. But in practice, according to reviews from those who applied, it is quite difficult to obtain them.
Banking institutions are cautious about issuing funds to everyone. This is due to the fact that if the borrower fails to repay the debt, the dispute will be resolved in the court of the country of which the borrower is a citizen.
Chinese banks will be more willing to issue loans to foreigners if they provide guarantees that 60% or more of the amount received will be used to purchase products or pay for services in China.
Registration of a mortgage
To apply for a real estate loan from a Chinese bank, a foreigner needs to work in China for at least 12 months on the basis of a work visa and find a guarantor with Chinese citizenship (this can be an employer).
The package of official papers required to obtain a mortgage consists of:
- passports;
- residence permit (residence permit);
- labor contract;
- salary certificates from the place of work;
- copies of the license of the company that provides the applicant with a workplace;
- certificates of tax payment within the last 12 months;
- a certificate confirming the applicant’s solvency;
- marriage/divorce certificate translated into Chinese.
Chinese banks are more favorable to those foreign borrowers who plan to purchase real estate in the locality in which they operate.
Bank of America - Bank of America (ticker BAC NYSE).
It is the largest bank holding company in the United States by assets, with $2.19 trillion. The company serves clients around the world and maintains relationships with 99% of US Fortune 500 companies. In 2008, BAC acquired Merrill Lynch, becoming the world's largest wealth manager. It is listed on the New York Stock Exchange (NYSE) and is part of the S&P 500 Index and the Dow Jones Industrial Average.
The headquarters is located in Charlotte, North Carolina, USA .
Number of employees : 208,000 people .
Wells Fargo - Wells Fargo (ticker WFC NYSE).
While making its way into the top 10, Wells Fargo has dealt with several scandals over the past few years that are worth noting. However, the bank currently has $1.93 trillion in assets and is one of the largest retail banks in the United States. Founded in 1852, Wells Fargo has approximately 9,000 retail locations throughout the United States. They became one of the largest banks in history when they acquired Wachovia (the largest banking chain in the US) in 2009 for $15 billion.
Its headquarters are in San Francisco, California .
Number of employees : 270,000 people .
Thus, there are 10 largest banks in the world. But of course, bigger is not always better.
Credit Agricole
The largest bank in France and the EU has been operating since the end of the 19th century - now its assets (as of 2021) reach $1.815 trillion. Credit Agricole operates mainly at the local and regional levels, but actively expands beyond France with its subsidiaries - there are even branches in Russia (Crédit Agricole Corporate and Investment Bank).
