Top News of the week : China’s banking system overtakes eurozone to become the biggest in the world
Editor Remarks : Chinese bank assets rose to $33 trillion at the end of 2016, surpassing $31 trillion for the Eurozone and $16 trillion for the US. Now the Chinese banking system is the world’s largest by assets. The world’s three largest banks are now Chinese.
The largest bank in the world, by assets, is the Industrial and Commercial Bank of China, followed by China Construction Bank and the Agricultural Bank of China. . The value of China’s banking system is now more than 310% the size of its GDP, compared to “only” 280% for the eurozone and its banks.
The massive size of China’s banking system is less a cause for celebration than a sign of an economy overly dependent on bank-financed investment, beset by inefficient resource allocation, and subject to enormous credit risks.