Financial Institutions

One of the key financial institutions are banks, which provide fundamental financial functions such as lending, depositing, and investing. A strong and stable banking system is important so that their functions help, among other things, financing enterprises, which in turn drives economic growth and positively impacts employment. The financial crisis in 2008 proved that a weak banking system can provoke a global economic crisis.

The next global economic crisis came in 2020 caused by the coronavirus pandemic. The central banks are especially important financial institutions in times of crisis to help stabilize the economy. After the coronavirus outbreak, central banks all over the world provided quantitative easing measures to help stimulate the economy and to help banks function the way they should.

Total assets of central banks worldwide
30.1tr USD
Largest investment bank worldwide
JPMorgan
Leading bank in Europe
HSBC Holdings

Market size

Worldwide market capitalization of banking sector dropped in 2020
Market capitalization of banking market worldwide from 1st quarter 2016 to 1st quarter 2021 (in trillion euros)
Further details: Visit original statistic

The market capitalization of the largest global banks took a hit during 2020 because of the global economic crisis caused by the coronavirus pandemic. Some of the world’s largest banks saw market cap values drop by more than a third, and some almost by half, throughout the year. The total aggregated market cap dropped significantly during the first quarter of 2020 and recovered slightly throughout the year, but with values far from the ones recorded in 2019.

Leading bank worldwide by market capitalization
Market capitalization of leading 100 banks worldwide
Leading banks in Europe by market capitalization

Market segments

U.S. asset management companies dominate the global financial market
Largest asset management companies worldwide in 2019, by managed assets (in trillion U.S. dollars)
Further details: Visit original statistic

Asset management companies is another key component of financial institutions. These companies manage funds for individuals and companies. The world’s leading asset managers are dominated by U.S. firms, more specifically, eight of the ten largest asset management companies in the world are based in the United States, the biggest one being BlackRock.

Total assets under management of BlackRock Inc
Global assets under management by region
Development of assets of global Exchange Traded Funds

Industry trends

Digital challengers on the rise
Largest venture capital-backed unicorn online banks in Europe as of February 2020, by market value (in billion U.S dollars)
Further details: Visit original statistic

With the rising trend of online banking, established retail banks are since a few years back being challenged by online banks. The banks exist purely in digital form, and customers may prefer it to a traditional bank due to its easy access through the app, their personalization features, and their low fees. The British unicorn Revolut was the largest venture capital-backed online bank in Europe as of 2020.

Mobile banking in the U.S.
Online banking in the Benelux
Disruptor banks UK

Industry leaders

Which is the world's largest bank?
Largest banks globally as of December 2020, by assets (in trillion U.S. dollars)
Further details: Visit original statistic

The world’s largest bank is the Chinese bank Industrial and Commercial Bank of China (ICBC). The state-owned commercial bank had total assets reaching around 4.3 trillion U.S. dollars in 2019. The three following largest banks in the world are also headquartered in China, China Construction Bank Corporation, Agricultural Bank of China, and Bank of China.

Banking Industry in China
Banking industry in the U.S.
Leading UK banks

Unique aspect of the industry

Who is the world's largest wealth manager?
Leading wealth management firms worldwide in 2020, by assets under management (in trillion U.S. dollars)
Further details: Visit original statistic

Wealth managers serves high net worth individuals (HNWI), whose investible wealth exceeds one million U.S. dollars, with managing their assets and optimizing their investment portfolios. Their investible wealth might refer to property, land, stocks, and bonds etc. The largest wealth manager in the world in 2020 was Bank of America’s Global Wealth and Investment division, with around 1.35 trillion U.S. dollars in assets under management.

Private Wealth Management
Private Wealth Management in China
Investments of High Net Worth Individuals

Industry Definition

The category Financial Institutions presents statistics and reports on establishments that provide financial services. These establishments include central banks, retail and commercial banks, online banks, investment institutions, and asset management companies, among others.

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