“Banco” is an Italian word from which the word “Bank” is derived”. “Banco” stands for “bench”. In the past, merchants in Italy used to lend and borrow money beside a bench. Hence the name “bank” came into existence.
Banks are financial institutions. They allow the public to deposit money and also make loans to the needy. Customers deposit their money in banks with the assurance that they can withdraw their money whenever needed. Banks also provide several other services which are mentioned below:
- Currency exchange
- Safe deposit boxes
- Certificate of deposits
- Individual Retirement Accounts
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How Do Banks Make Profit?
Banks basically act as intermediaries between borrowers and lenders. Their primary source of revenue is the spread between the interest rate they provide their creditors and the interest rate they charge from their borrowers. They also charge commissions and fees for their other services.
Now, that we have a basic understanding of the working of banks, let us find out the top 10 biggest banks in the world.
List of 10 Biggest Banks in The World
- Industrial and Commercial Bank of China
It is a multinational bank of Chinese origin. It was founded on 1 January 1984 as a limited company. It is a state-owned commercial bank with capital received from the Ministry of Finance of China. ICBC has been continuously ranked as one of the most profitable organizations in the banking world according to a list released by Forbes.
- Headquarters: Beijing, China
- Total market capitalization: $246.5 billion
- Number of Employees: 434,798
- China Construction Bank Corporation
CCB is a part of the “Big Four” banks in China. It was founded as People’s Constructions Bank of China on 1 October 1954. It was later named China Construction Bank Corporation in the year 1996. It boasts a worldwide presence with 13,629 domestic branches and several other branches in international locations such as New York City, Kuala Lumpur, Melbourne, etc.
- Headquarters: Beijing, China
- Total market capitalization: $257.3 billion
- Number of Employees: 345,971
- Agricultural Bank of China
ABC or AgBank as it is most popularly referred to is also a part of China’s “Big Four” banks. It was established on 10 July 1951 and has been formed and established several times till it was finally formed in February 1979. It was also the last of the “Big Four” banks to go public.
- Headquarters: Beijing, China
- Total market capitalization: $203.2 billion
- Number of Employees: 467,631
- Bank of China Ltd.
BOC was founded on 5 February 1912. It is a state-owned commercial bank in China. It also ranks as the fourth-largest bank in the world. The bank is one of China’s oldest and most trustworthy financial institutions.
- Headquarters: Beijing, China
- Total market capitalization: $181.4 billion
- Number of Employees: 306,322
- JPMorgan Chase
If we go by market capitalization, it ranks number one on the list of the world’s largest banks. Also, it is the largest bank in the U.S. The company was founded on 1 December 2000.
- Headquarters: New York City, U.S.
- Total market capitalization: $488.4 billion
- Number of Employees: 293,723
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- Mitsubishi UFJ Financial Group
MFUG Bank was established on 1 January 2006. It is the largest bank in Japan. It was formed by the merger of UFJ Bank Ltd. and Bank of Tokyo-Mitsubishi, Ltd. The company boasts 773 offices in Japan with 76 of its offices located abroad.
- Headquarters: Tokyo, Japan
- Total market capitalization: $111.6 billion
- Number of Employees: 32,186
- BNP Paribas
BNP Paribas was founded in the year 2000. This bank was formed with the merger between Banque Nationale de Paris (BNP) and Paribas. It is an international banking group of French origin. After HSBC, it is the second largest banking company in Europe.
- Headquarters: Paris, France
- Total market capitalization is $93.3 billion
- Number of Employees: 190,000
- HSBC Holdings plc
It is the largest bank in Europe in terms of total assets. HSBC Holdings was established on 3 March 1865. It is a multinational bank that also deals in financial holdings.
- Headquarters: London, England, UK
- Total market capitalization is $219.2 billion
- Number of Employees: 219,199
- Bank of America
BofA or BoA was founded on 30 September 1998. It is the second largest bank in the United States preceded by JP Morgan Chase. In terms of market capitalization, it ranks number two in the world.
- Headquarters: Charlotte, North Carolina, U.S.
- Total market capitalization: $279.2 billion
- Number of Employees: 217,000
- Crédit Agricole
Also called La Banque Verte, it is a French banking group with an international presence. It is also the world’s largest cooperative financial institution. It ranks as the third-largest bank in Europe.
- Founded on 5 November 1894.
- Headquarters: Montrouge, France
- Total market capitalization: $52.1 billion
- Number of Employees: 142,000
We hope this article has given you an insight into the world of the top 10 biggest banks in the world.
