What are the largest banks in the world?

What are the largest banks in the world?

World’s 5 Biggest BanksThe economic surge and plunge of a country or the world as a whole is totally dependent on the banking contingency. It is a well-known fact that the global financial crisis shadowed the European economy back in 2008. The declaration of bankruptcy filed by Lehman brothers crippled the entire banking fraternity in the US and had caused a worldwide financial slowdown. This article is all about elaborating on the significance of the top banks of the world on the world economy.

Which are the 5 Biggest Banks of the World (2019)?

  1. Industrial and Commercial Bank of China (ICBC). It is the largest bank (by assets) in the Republic of China in the current financial year. It is known to have a total declared asset of 8.5 trillion yuan (or $1.26 trillion) with a certain amount of interest rate and exchange rate risks, respectively. According to President Mr. Gu Shu, the bank is seeking to increase its market capitalization further, by lending more than 100 billion yuan to small enterprises.
  1. China Construction Bank Corporation. It is considered the second-largest bank in China. Incorporated in the year 2004, this commercial bank has shown an increase in the semi-annual profit slab by 6.3% as compared to the previous year.
  1. Agricultural Bank of China. Considered the third-largest bank of the Republic of China, Agricultural Bank of China is not only a personal banking marvel, for its lending capacity has increased manifold (53% to be precise) since the year of its inception. Its tenacity to create opportunities for farmers, especially in the personal banking lending segment has splurge up to $468.3 billion.
  1. Mitsubishi UFJ Financial Group (Mitsubishi). Ranked as Japan’s largest banks, operates across segments like retail banking, commercial banking, securities trading, etc. It has acquired an A1 rating from the credit ratings company- Moody’s. Its financial stability and market share can be proven by the fact that it has recently acquired DZ bank’s (a German entity) aviation finance division for a whopping 5.6 billion euros (or 710 billion Yen).
  1. Bank of China. This has been recently acknowledged and listed by the Forbes magazine as one of the World’s best banks of 2019. It is listed as the fourth- biggest bank of the country, after ICBC, CCB, and ABC (banks), respectively. Bank of China (BOC) facilitates lending activities across corporate, personal, investment, treasury operations, etc. According to statistics, this bank has exhibited exemplary profit ratios, especially operating profit of RMB 227, 533 million (as of December 31, 2018).

By and large, a robust banking segment creates enough opportunities for segments like-retail, corporate, insurance, wealth management, asset management, securities, trading, etc. In order for financial ecosystem to fight against any (or all) kind of vulnerabilities, a robust and resilient banking infrastructure is imperative. An orderly and financially independent banking environment eventually fuels a stable and sound economy for the smooth functioning of a nation across various sectors!

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