There has been much debate about the size of large financial institutions and subsequent claims by critics that U.S. banks are unnecessarily large, growing disproportionately, and should be forced to shrink. SNL Financial released an analysis showing that the largest U.S. banks are not so large compared to their international peers. The analysis found that there is currently only one U.S. bank in the top 10 globally, and only three in the top 20. The top 4 spots being held by Chinese banks. Through their size, global reach, and diverse product and services lines, large U.S. financial institutions are critical to serving the financial needs of large U.S.-based corporations that employ millions of American, and to which millions of other small businesses across America sell products and services.
Chicago Tribune: Only 1 U.S. bank among world’s top 10
China has four of the top 10 slots
By Becky Yerak
1:37 p.m. CDT, July 8, 2014
A list of the world’s 100 largest banks is out, and the United States has only one representative in the top 10.
Topping the list is Industrial & Commercial Bank of China Ltd., with $3.174 trillion in assets, according to numbers released Tuesday by SNL Financial. It’s followed by $2.758 trillion-asset HSBC Holdings Plc of the United Kingdom.
Jumping to No. 3, up from No. 7 since SNL last compiled its list in December 2013, is China Construction Bank Corp., with $2.596 trillion in assets.
China has four of the top 10 slots, according to the Charlottesville, Va.-based data gatherer. The United States has 11 representatives on the top 100, led by JPMorgan Chase & Co. at No. 6 with $2.477 trillion in assets. Other banks in the top 10 included: BNP Paribas SA and Credit Agricole Group, both of France; Mitsubishi UFJ Financial Group of Japan; and Barclays Plc of the United Kingdom.
Ranking No. 12 was Bank of America Corp., with $2.15 trillion in assets. Citigroup Inc. ranked No. 14.
China is the country with the most banks on SNL’s top 100 list, with 15, followed by the United States, and then Japan with eight. Europe as a whole, and Russia, have 45 of the top 100 banks, down from 47 in SNL’s previous ranking.
A company’s accounting methods can affect its world ranking, SNL pointed out. The largest four banks, for example, report total assets under International Financial Reporting Standards, which require banks to include the gross amount of derivative assets on their balance sheets.
In contrast, banks that report under U.S. generally accepted accounting principles report the net amount of derivatives. Chase would be No. 1 if it reported them on a gross basis, SNL said. Bank of America would be third and Citi would be seventh, SNL said.
Other U.S. banks in the top 100: Wells Fargo & Co., 21; Goldman Sachs, 30; Morgan Stanley, 34; U.S. Bancorp, 70; Bank of New York Mellon Corp., 72; PNC Financial Services Group, 80; Capital One Financial Corp., 85; State Street Corp., 96.