Thursday, Dec 8, 2022
International Finance
Banking

ICBC is New Banking Emperor

The rankings are based on Tier 1 capital as a measure of a bank’s ability to lend on a large scale and endure shocks. July 04, 2013 : Industrial and Commercial Bank of China (ICBC) has gone past a pair of U.S. banks to top a global ranking of banks with the most capital, highlighting the growing size and importance of Chinese lenders. ICBC topped...

The rankings are based on Tier 1 capital as a measure of a bank’s ability to lend on a large scale and endure shocks.

July 04, 2013 : Industrial and Commercial Bank of China (ICBC) has gone past a pair of U.S. banks to top a global ranking of banks with the most capital, highlighting the growing size and importance of Chinese lenders. ICBC topped the annual list of a prominent magazine of the top 1,000 banks for the first time, relegating Bank of America to third from first, while JP Morgan Chase remained second. ICBC stood third last year. The rankings are based on Tier 1 capital as a measure of a bank’s ability to lend on a large scale and endure shocks. ICBC has for some time had been ranked as the top bank by market value. HSBC, with a spate of controversies and penalties by regulators stood fourth in the list while China Construction Bank ranked fifth. China had four banks in the top 10 and 96 in the top 1,000. China’s top four lenders – ICBC, CCB, Bank of China and Agricultural Bank of China filled the top positions for profits last year. ICBC’s $ 49 billion profit put it top of the profit table for a third successive year.

Total profit for the biggest 1,000 banks was now back close to levels achieved for 2007-09 financial crisis, but the regional share had shifted significantly. The European banks in 2006 had accounted for 46 percent of global profits and 58 percent of assets, but in the last year it had dropped by 2 percent of profits and 43 percent of assets. Asia’s banks have lifted their share of profit to 56 percent from 19 percent in the same time and their assets share has grown to 35 percent from 22 percent. Spain’s Bankia posted the biggest loss last year, at $ 33 billion, with six of the 10 biggest banking losses coming from Spain.

Forbes Global 2000

ICBC, was also ranked as the No.1 in the Forbes Global 2000 public listed companies, ranked on an equal weighting of sales, profits, assets and market value. The bank provides personal banking services including personal deposits, personal loans, credit cards, private banking, fund investment and personal financing services. In corporate banking services it accepts corporate deposits, loans, international settlements, electronic banking services and mobile banking services.

This is the first time a Chinese company has clinched the top ranking since the launch of the ranking by Forbes, a decade ago. In this year rankings U.S. companies have experienced a downslide in the rankings, Exxon Mobile, which was ranked No.1 last year, moves down to No. 5, J.P Morgan slipped to the third place from being No.2 last year. General Electric’s ranking has declined from No.3 to No.4. This year’s nomination saw 63 countries joining the poll.

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