Banks play an active role in modern economy. It is where financial transactions take place whether from individuals or corporations. It is worth noting that the financial crisis has seemingly not affected the world's largest banks, which combines $25.5 trillion worth of assets. Majority of the world's largest banks are located outside the United States. In a survey conducted by Insider Monkey on the top highest paid CEOs of 2014, not one was working in banks or financial corporations. This is quite surprising due to the large amount of money that comes in and out of its walls.
China has the largest number of big banks in the world with 14 of the Top 100 based in the country. The United States has 10 of the Top 100, based on SNL's rankings. So why is the US not among the top banks in the world? This is attributed to the system of accounting of assets. China uses International Financial Reporting Standards (IFRS) while US uses Generally Accepted Accounting Principles (GAAP).
Due to the complexity of the different accounting systems, the banks that are included in the list are diagnosed based on the bank's market capitalization. This way, there would be no need to deal with the different accounting methods and instead rely on the stock market. See list below for the top 5 richest banks in the world:
With a market capitalization of $181.7 billion, Bank of America is also ranked 21st among the banks with the highest total revenue in the USA. Although it was hit badly by the 2008 financial crisis, it still made it to the top 5 richest banks. It is the second largest bank in the United States in terms of assets.
HSBC Holdings is the first European bank on the list with market capitalization of $191.4 billion and assets valued at more than $2.67 trillion. With 125 million customers being served by over 7,000 branches, the bank has prevented itself from being eluded by financial complications.
3. Industrial and Commercial Bank of China
The third largest bank in the world, Industrial and Commercial Bank of China is the top banking firm among its Chinese peers. It has a total market capitalization of $196.2 billion. In 2013, its total assets reached the $3 trillion mark and its net profits climbed to $42.3 billion.
The merging of Chase Manhattan Corporation and JPMorgan & Co. in 2002 led to the creation ofJPMorgan Chase. It beats out Wells Fargo as the largest bank in the United States. It has a total market capitalization of $229.9 billion. Its total assets is valued at $2.50 trillion.
1. Wells Fargo
Topping the list of the Top 5 richest banks in the world is Wells Fargo. With a market capitalization of $261.7 billion, it is, however, not the largest bank in the United States. It only ranks 4th in terms of assets and services different customers from around the world.
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