Financial Institutions

Financial institutions are companies that perform important financial and monetary functions such as lending, depositing, investing, and wealth management. The primary financial institutions are banks, trust companies, insurance companies, brokerage firms, and investment dealers. A strong and stable system of financial institutions, particularly regarding banks, is crucial because their activity can influence economic growth. The financial crisis in 2008 proved that a weak banking system can provoke a global economic crisis.

The role of central banks is especially important in terms of economic stability. During the economic crisis caused by the coronavirus pandemic in 2020, central banks all over the world provided quantitative easing measures to help stimulate the economy. In 2022, the spotlight shifted to key interest rates, which were raised frequently as a response to the alarmingly increasing inflation.

Total assets of central banks worldwide
41.9tr USD
Largest investment bank worldwide
JPMorgan
Leading bank in Europe
HSBC Holdings

Market size

The stability of market capitalization in the global banking sector in 2022

Market capitalization of the 100 largest banks worldwide from 1st quarter 2016 to 2nd quarter 2023 (in trillion euros)

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Further details: Visit original statistic Market capitalization of the 100 largest banks worldwide from 1st quarter 2016 to 2nd quarter 2023 (in trillion euros)

The market capitalization of the largest global banks took a hit in 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. In 2021, the market capitalization of the global banking market increased again and has remained steady throughout 2022 even exceeding the pre-pandemic values.

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

Market segments

European Central Bank’s annual income is far from peak

Net income of the European Central Bank from 2012 to 2022 (in million euros)

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Further details: Visit original statistic Net income of the European Central Bank from 2012 to 2022 (in million euros)

The European Central Bank (ECB) is a crucial financial institution in Europe’s economy. The ECB is responsible for administering monetary policy in the eurozone, which with its 20 member states constitutes one of the largest currency areas in the world, making it one of the world’s most important central banks. The net income of the ECB peaked in 2019 and decreased sharply in the following years.

The Euro currency
U.S. Federal Reserve balance sheet
Central bank policy rates in advanced and emerging economies

Industry trends

Digital challengers on the rise

Number of digital banks worldwide as of January 2024, by region

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Further details: Visit original statistic Number of digital banks worldwide as of January 2024, by region

With the rising trend of online banking, established retail banks are being challenged by online banks. Online banks exist purely in digital form, and customers may prefer them to traditional banks because of their easy access through the app, their personalization features, and their low fees. The Middle East and Africa had the lowest number of challenger banks worldwide as of 2022, with Europe having the highest number of challenger banks.

Mobile banking in the U.S.
Disruptor banks UK
Banking in Europe

Industry leaders

Which is the world's largest bank?

Largest banks worldwide as of December 2023, by market capitalization (in billion U.S. dollars)

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Further details: Visit original statistic Largest banks worldwide as of December 2023, by market capitalization (in billion U.S. dollars)

The world’s largest bank by market capitalization is JPMorgan Chase. The publicly listed commercial bank had total assets of approximately 393 billion U.S. dollars in 2022. The two following largest banks in the world are Bank of America and Industrial & Commercial Bank of China. These two banks taking second and third spots hold assets exceeding two billion U.S dollars.

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

Unique aspect of the industry

Which is the world's largest asset management company?

Largest asset managers worldwide as of March 2023, by value of managed assets (in trillion U.S. dollars)

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Further details: Visit original statistic Largest asset managers worldwide as of March 2023, by value of managed assets (in trillion U.S. dollars)

Asset management companies are another key component of financial institutions. These companies manage funds for individuals and companies. The world’s leading asset managers are U.S.-based firms: Eight of the ten largest asset management companies in the world are based in the United States. The largest asset management companies are BlackRock and Vanguard Group.

Total assets under management of BlackRock Inc

Development of assets of global Exchange Traded Funds

State of the industry

  • Largest banks in the United Kingdom (UK)
  • Commercial banks in the United States
  • European Central Bank
  • Racial diversity at the largest U.S. banks
  • Gender diversity at the largest U.S. banks
  • Asset management in Europe
  • BlackRock

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.

More interesting topics from the industry "Financial Institutions"

Banks

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