The Industrial and Commercial Bank of China (中国工商银行) was ranked first in the Top 1000 planet Banks 2023 ranking, developed and published by The Banker magazine, existing since 1926.
The banks in China are the second largest group ranked at 140, behind the United States with 196 banks. However, 5 Chinese megabanks:
- Industrial and Commercial Bank of China (ICBC),
- China Construction Bank,
- Agricultural Bank of China,
- Bank of China and
- Bank of Communications
It dominates the ranking, accounting for half of the 10 largest lenders in the world.
The data presented in the study show that the Chinese banking sector is inactive developing, albeit at a slower pace than in fresh years. This was mainly influenced by a strong US dollar (in 2022 it strengthened by 9% to RMB), a currency in which the results adopted for the ranking are denominated.
China, which for the last decade has been a driver of the growth of the global banking sector, recorded in 2022 a decrease in core capital of 1.56% to 3.3 trillion USD (13.59 trillion PLN). This capital is the main measurement of the financial strength of banks.
This capital denominated in Chinese currency increased by about 8%, which is inactive the consequence of weaker than erstwhile ones, which were expressed in double-digit sizes in executions 2017-2021.
For the first time in the past of the ranking Chinese banks are represented so many (140 institutions, for comparison with Poland 4).
The full value of their assets increased by 1.12% to 42 trillion USD (about PLN 174.26 trillion), loans by 1,57% (24.8 trillion USD, or about PLN 102.17 trillion), and deposits by 0.87% (31.3 trillion USD, or about PLN 128.95 trillion).
China has 32.67% of the planet capital of Tier1 banks and 27.69% of their assets. Despite a strong dollar, Chinese banks are inactive ahead of their rivals with the United States both in terms of Tier 1 capital and in terms of asset growth.
The growth rate of the largest Chinese banks declined as a consequence of the economical downturn.
The world's largest Industrial and Commercial Bank of China held USD 497.30 billion in the past year (about PLN 2.05 trillion), which decreased by 2.27% in relation to year/year as a consequence of an increase in credit by 2.63%. This bank has been ranked first in the ranking for 11 years, and along with China Construction Bank, Agricultural Bank of China and Bank of China occupies the first 4th sixth year in a row.
Only from 5th place do the largest US banks appear (JPMorgan Chase, Bank of America, CitiGroup, Wells Frago).
This year's ninth place included the Chinese Bank of Communications, which outranked the tenth, the only in the top 10 European bank HongKong ShangHai Bank corp (HSBC) from the UK.
In total, the top 20 1000 largest banks in the planet included 10 Chinese banks. The best bank of Poland, PKO BP, ranked 185th.
In addition to strengthening itself on its leading positions of the largest Chinese banks, the fast improvement of smaller, regional Chinese banks is noteworthy.
With respect to the capital increase, ZhuHai agrarian Commercial Bank (珠海农村商业银行), which ranked 1st in the PRC in this category (capital increase by... 62.55% y/y). This increase allowed the bank to be ranked 716th. The second in this category China Resources Bank of ZhuHai (珠海华润银行) increased its capital by 34.87% last year, and ranked 326 in the ranking.
Two Chinese online banks reported crucial increases in capital:
- MyBank – increase by 23.60%, 418th place in the ranking;
- WeBank – growth by 19.69%, 284th place in ranking
MyBank is owned by Ant Group (蚂蚁集团), a company affiliated with Alibaba (阿里巴巴), and WeBank is owned by Tencent (腾讯).
Among Chinese banks, the biggest increase in profits was recorded by the Bank of WenZhou (温州银行): an increase of 2201.88%, 410th in the ranking. The second position in this category included ShengJing Bank (盛京银行) from ShenYang, the provincial capital of LiaoNing: an increase of 947.91% (158th place in the ranking), on the 3rd HanKou Bank (汉口银行) from WuHan, the provincial capital of HuBei: a profit increase of 183.80%, 311th position in the global ranking.
Data published in this year's The Banker ranking show how much danger it would be for the US banking and financial strategy to internationalize Chinese bank operations.
Without the dominance of the dollar, US banks would lose their position and importance in the global system. And in this field there will most likely be fears far more crucial to the future form of the planet than those fought by armies.
The Banker is an English-language monthly magazine devoted to global financial affairs, owned by The Financial Times Ltd. and edited in London, UK. The magazine was first published in January 1926 by the founding editor, Brendan Bracken of Financial News, who was president of the Financial Times from 1945 to 1958.
The Banker is the world's leading origin of information on banking and finance, read in over 120 countries and is simply a key origin of data and analysis for the industry. It combines in-depth regional and national relations with reports on global financial markets, regulations and policies, the management of cash and services in securities, commodities, infrastructure and task financing, trade and technology, settlement and settlement, and corporate governance and governance issues.
He gained the reputation of an objective, trustworthy and insightful origin of bank information. It has a unique database of more than 5000 banks that map their strength, financial condition, core capital, their profitability and performance compared to another banks.
Source:
https://www.thebanker.com
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
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