China’s banking system can trace its roots back all the way back to the tenth century Song dynasty. Since then Chinese society and politics have changed significantly, going through several cultural and political upheavals in its history. China’s banking system as we know it today is the most robust and largest banking system in the world. According to data presented by TradingPlatforms.com, 5 of the top 10 banks in the world come from China, with the largest being the Industrial & Commercial Bank of China with total assets of $4.9T.
The four largest banks in the world in total assets all come from China. Starting from the largest, these are; the Industrial & Commercial Bank of China ($4.9T in total assets), China Construction Bank Corp ($3.9T in total assets), Agricultural Bank of China ($3.7T in total assets) and the Bank of China ($3.6T in total assets). Rounding out the top ten list is the Postal Savings Bank of China ($1.4T in total assets), giving China five representatives in the Top 10 list.
Combined, China’s Big 5’ have a total of 17.6T in total assets which accounts for almost 70% of the total assets of the entire top 10 list.
Apart from China’s Banks, the five other banks on the list all come from Europe. Banco Santander from Spain is the leading European Bank with $1.8T in total assets. The next two largest banks in Europe, Group BPCE ($1.51T in total assets) and Societe Generale ($1.5T in total assets), are from France. Germany’s Deutsche Bank AG is the last European bank on the top 10 list with total assets of $1.45T.
A look at the overall picture of the total assets of the top ten list shows that there is a sizeable difference between the largest banks in China and the largest Banks in Europe. None of the European Banks holds more than $2T in total assets while all four of China’s largest banks all hold total assets of more than $3.5T
One of the factors that explain the significant difference in wealth between China’s largest banks and Europe’s largest banks is the ownership of these banks. All 5 of China’s largest banks on the top 10 list are state-owned while all the European banks are privately owned. This means that the largest Chinese banks act as the main funding source of government projects which always equate to large investments.
Rex is an online writer and researcher informed by a global perspective that allows him to uniquely analyse numbers and convey them in a relatable way. He specialises in the area of Sports, Esports and the CBD industry as well as having an eye for the latest financial and technological trends. Well versed in SEO and other aspects of digital marketing, he uses his skills to good use on freelancing platforms while being based in the Netherlands.
Don't see the answer that you're looking for?
Save my name, email, and website in this browser for the next time I comment.
Best UK Stock, Forex, CFD, Crypto, Social or Day Trading Platform that meets your needs.