By asset size, the largest four banks in the world are Chinese, according to the 2023 annual rankings by S&P Global Market Intelligence. They include the Industrial & Commercial Bank of China, the China Construction Bank, the Agricultural Bank of China, and the Bank of China, holding more than $19.87 trillion in combined assets.
China's financial institutions are controlled by the government through the People’s Bank of China (PBOC). The PBOC is responsible for planning monetary policy and oversees the State Administration of Foreign Exchange, or SAFE, which establishes foreign exchange policies. Although they trade on public stock exchanges, each bank remains wholly or predominantly state-owned and headquartered in Beijing.
Key Takeaways
- The four largest banks in the world are located in China.
- China's largest banks are the Industrial & Commercial Bank of China, the China Construction Bank, the Agricultural Bank of China, and the Bank of China.
- Bank managers in China are appointed by the Chinese Communist Party (CCP), and the People’s Bank of China (PBOC) is subject to political control by the State Council.
1. Industrial & Commercial Bank of China
Occupying the number one spot is the Industrial & Commercial Bank of China (ICBC). It is the largest multinational bank company in the world, as measured by total assets of over $5.7 trillion as of 2023.
The bank was established in 1984 as a limited company and, as the name implies, specializes in business loans to manufacturers, retailers, power companies, and other businesses.ICBC has overseas subsidiaries, including ICBC USA, with 13 branches across the United States.
In 2006, ICBC had what was, at the time, the world’s largest initial public offering (IPO), with a value of over $21 billion. It was the first company listed simultaneously on the Hong Kong Stock Exchange and the Shanghai Stock Exchange.
2. China Construction Bank Corp.
The China Construction Bank (CCB) has $5.0 trillion in assets as of 2023. It operates a network of 39 domestic branches with global branches in Tokyo, Frankfurt, Ho Chi Minh City, New York, Seoul, Hong Kong, Sydney, Singapore, and Johannesburg, and a wholly-owned subsidiary in London.
The bank is one of China's oldest, founded in 1954 as the People’s Construction Bank of China, changing its name in 1996.
Although they trade on public stock exchanges, each of the four banks in China remains wholly or predominantly state-owned and headquartered in Beijing.
3. Agricultural Bank of China
The Agricultural Bank of China (ABC), sometimes known as AgBank, was founded in 1951. As its name implies, it originally specialized in financing enterprises in rural China but has diversified into corporate and consumer banking services and products.
The bank has branches globally, including over 22,000 domestic branches and thirteen global branches. As of 2023, ABC holds $4.9 trillion in assets.
4. Bank of China
Established in 1912 to replace the Imperial Bank of China, the Bank of China (BOC) is the country's oldest on the mainland. Its total assets numbered $4.2 trillion in 2023. Its activities include corporate banking, personal banking, investment banking, and insurance.
Bank of China has over 550 overseas branches in more than 60 countries. Headquartered in Beijing, the Bank’s operations in the United States are represented by BOC U.S.A.
Where Do U.S. Banks Rank in Terms of Size?
Following the top four banks headquartered in China, J.P. Morgan Chase and Bank of America Corp. claim spots five and six in 2023.
How Are Bank Assets Measured?
Chinese banks use IFRS Accounting Standards which supports international banking. Banks in the United States rely on Generally Accepted Accounting Principles (GAAP).
What Is Banking Oversight in China?
Banks and financial institutions are controlled by the state, with interest rates and exchange rates are tightly regulated.
The Bottom Line
Holding more than $19.87 trillion in assets, the four largest banks in the world are the Industrial & Commercial Bank of China, the China Construction Bank, the Agricultural Bank of China, and the Bank of China. Two U.S. banks, J.P. Morgan Chase and Bank of America Corp. follow as fifth and sixth according to S&P Global's 2023 list.
