Asia-Pacific banks are on
the rise while deposit outflows shrink US banks
NEW
YORK, April 30, 2023 /PRNewswire/ -- Chinese
banks extended their dominance as the world's largest lenders in
2022 despite rate hikes and slowing economic growth while their
global peers saw declines in balance sheets, according to the
largest Global Bank Ranking published by S&P Global Market
Intelligence, an annual ranking of the 100 largest banks in the
world in terms of total assets.
The number of Chinese banks on the list of the world's 100
largest banks by asset rose to 20, from 19 in 2021, after Bank of
Ningbo Co. Ltd. joined the list at No. 89. The country's largest
banks continued to hold the top four slots.
"Elevated inflation, interest rate hikes and the Russia-Ukraine war damped global economic growth and
investor sentiment in 2022," said Nathan
Stovall, director of financial institutions research at
S&P Global Market Intelligence. "Chinese lenders were not
immune to these pressures either, but their growth was far stronger
than institutions in other parts of the world as the People's Bank
of China maintained an easing bias
while most major central banks, led by the US Federal Reserve,
significantly tightened monetary policy and created pressure on
bank liquidity."
While assets held by the 100 largest banks as of the end of 2022
totaled $111.97 trillion, down 1.5%
from $113.67 trillion a year earlier,
aggregate assets rose 2.4% at the 19 Chinese banks that appeared on
the lists of both 2021 and 2022. The four largest Chinese banks
expanded their assets 4.1% to $19.87
trillion in 2022 from $19.08
trillion in 2021. Agricultural Bank of China Ltd. led the
big four's gains with a 7.5% increase.
The biggest climber on the world's 100 largest bank list
was UBS Group AG, which surged to 20th
place from 34th in 2021. Its $1.61 trillion asset size has been adjusted to
incorporate troubled Credit Suisse Group AG, which UBS agreed
to take over in an emergency deal in March. UBS
expects to wind down noncore activities over the coming three to
four years, including parts of Credit Suisse's investment bank.
The total number of Asia-Pacific lenders on the list
rose to 43 from 41 with Macquarie Group
Ltd. joining Bank of Ningbo
as a new entrant. In total, 22 Asia-Pacific banks' rankings rose in
2022, 14 fell and seven were unchanged. Ten Chinese banks posted
increases in rankings, the highest number in the region while seven
of the eight Japanese banks slid.
"US banks generally suffered asset declines in 2022 as tighter
monetary policy prompted customers to withdraw deposits built up
during the pandemic. The decline in cash and securities outweighed
strong loan growth, which was fueled by high inflation and a
healthy economy," Stovall said.
The trends applied to the 11 US banks among the world's 100
largest and to the nation's lenders as a whole.
"The 2022 deposit outflows proved to be a prelude to a liquidity
crunch that emerged in March and risks restraining lending. US
banks were already reporting tightening loan standards over
recession fears at the end of last year," Stovall said.
To access the Top 100 list, or any of the regional bank
rankings, please visit here or contact
press.mi@spglobal.com.
S&P Global Market Intelligence's opinions, quotes, and
credit-related and other analyses are statements of opinion as of
the date they are expressed and not statements of fact or
recommendation to purchase, hold, or sell any securities or to make
any investment decisions, and do not address the suitability of any
security.
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S&P Global Market Intelligence
+82 2 6001 3128
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SOURCE S&P Global Market Intelligence