China now has seven of the world’s 10 largest banks by tier-one capital, with the country’s four biggest state-run lenders taking the top positions in a new global ranking that reflects Beijing’s growing ambitions to expand its financial power internationally.
The ranking, released on Wednesday by The Banker magazine, placed Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China in the first four positions globally by asset scale. US banking giant JPMorgan Chase ranked fifth.
Chinese lenders accounted for seven of the top 10 positions in the ranking, and all seven banks are controlled by the Chinese government. Postal Savings Bank of China entered the top 10 for the first time, while US-based Bank of America and Citigroup ranked sixth and eighth respectively.
The report showed that Chinese banks collectively held US$54.8 trillion in total assets, more than double the US$25 trillion held by American banks included in the ranking. The figures highlighted the scale of China’s banking sector as the country seeks to increase its role in global finance.
However, the ranking also showed that the size advantage does not extend to all areas of banking performance. US banks continued to maintain an advantage in profitability, according to the report.
Chinese banks among the top 1,000 globally recorded combined pre-tax profits of US$392 billion, compared with US$328 billion for US banks. The Banker said American lenders continued to lead in profitability performance, while European banks saw stronger earnings growth after a weaker previous year.
The growth of China’s banking sector is closely connected to Beijing’s broader financial objectives, including expanding the international use of the yuan, creating alternative cross-border financing channels and increasing overseas banking operations.
The expansion of Chinese banks abroad has become a key part of efforts to strengthen the country’s financial influence and support wider economic goals. The increasing global presence of Chinese lenders has also been linked to efforts to promote yuan internationalisation and reduce reliance on existing international financial systems.
Silvia Pavoni, editor-in-chief of The Banker, said Chinese banks’ international expansion and efforts to promote the yuan’s global role would become increasingly important factors influencing future growth and profitability.
“China’s largest banks continue to underpin their dominance,” Pavoni said, adding that the scale and resilience of the country’s banking sector remained significant as the global economy faced uncertainty and geopolitical challenges.
The latest ranking underscores the continued rise of China’s state-controlled banks in global finance, with the country’s largest lenders maintaining their position at the centre of Beijing’s efforts to build a stronger international financial presence.
