U.S. Financial Institutions No Longer on Top

The following two charts show that US financial institutions are no longer the best in the world when compared to 1999.

Chart #1:

click to enlarge

Chart #2:

Source: Financial Times

Though the above graphs were from March of this year, they are worth reviewing. In 1999, out of the Top 20 financial institutions in the world, 11 were US-based. Some of the banks such a Bank One have disappeared in 2009 since it merged with Chase a few years ago. It is interesting to see Citibank (C) at the top of the list at that time. Next in the ranking was Bank of America (BAC).

In 2009, the top three spots have gone to Chinese banks. Citibank and Bank of America are not even on this list. Two Canadian banks - Royal Bank of Canada (RY) and Toronto-Dominion Bank (TD) have made it to the list. Australia also has two banks listed. In addition to Chinese banks, the importance of emerging markets is confirmed by the presence of Itau Unibanco Banco Multiplo (ITU) and Banco Bradesco (BBD).

Comments

[Greyowl:]

Firstly, it is not the best, it's the biggest. And I'd think the Chinese banks got so big not because of their best practices that attracted investments from all over the world (or even from Chinese individual investors), but because the Chinese government pumped the trade surpluses into them. And shielded them from the competition domestically

Secondly, It may be all good. In future let the Chinese worry about the banks "too big to fail" ;-)

Thirdly, American banks are still among the best. Otherwise, who would blame GS for the recent surge in the stock market. If it were GS, I'd say "Masterful work".

May 19 08:23 PM

[David Hunkar:]

Thanks Greyowl for the comments. Though I agree that the Chinese government propped up their banks to be on the top I doubt they would be able to keep it that way for too long. You are right. Not many Chinese banks operate internationally.

May 24 12:43 PM