Crunching the numbers for the latest Top 1000 World Banks ranking, to be released on July 4, piques one’s interest in the evolution of the world’s banking industry. One simple way to track this is to look at the number of banks to appear in the ranking, which provides a snapshot of each country’s banking sector year on year. By this metric alone, China’s spectacular rise is plain to see.
China went from 14 banks in the 2001 Top 1000 to 144 in 2021. Over the past 20 years, only once – in 2013 – did it see a decrease in the number of banks in the ranking, but it then rebounded in 2014 to above 2012 levels. Interestingly, 2013 was the year that Industrial and Commercial Bank of China became the largest bank in the world, with $160.65bn in Tier 1 capital.
The US, still with the most banks in the ranking, has seen a decline in the number of banks, from 205 banks in 2001 to 178 banks in 2021. However, the number has fluctuated over the years – for example, 211 US banks made the list in 2004, whereas in 1997 there were only 148. Over the course of the global financial crisis, the US went from 163 banks in 2008 to 153 in 2010, but then recovered to 176 in 2011.
Germany has seen a more dramatic fall over the past two decades. It has gone from 89 banks in 2001 ranking to just 23 in 2021. The lowest number it posted was 21 in 2016. Japan has also seen a contraction, from 116 to 87. Its lowest ebb was 86 banks in 2017. However, during the global financial crisis, it went from 98 banks in 2008 to 114 in 2010.
The UK, on the other hand, had the same number of banks (25) in the 2021 ranking as it did in 2001. It did take a hit during the global financial crisis, when the number of banks reached the lowest level in 20 years – just 12 in 2010. But it bounced back the next year, with 20 banks in the Top 1000.
What will the 2022 Top 1000 World Banks ranking show? Find out on July 4.
