Top 10 bank in the world: Chinese bank still dominating the rank; know where Nepalese Banks stand comparative to world top banks

‘The Banker’ publishes the top 1000 world banks in 2019, showing the increment in the size of bank. Open economy around the world and free trade lead to boom in the banking sector.

AS previous year, Chinese bank dominates the top 10 list. More precisely, top 4 banks out of top 10 banks are Chinese banks follows by next top 4 American Bank.

China’s banks are the world’s largest ranked by Tier 1 capital and make the highest profits. However, despite the biggest bank in the world Chinese bank are less efficient than American Banks. Return on assets and return on equity of American Banks are higher than Chinese Bank.

According to the report, the British Bank defied the Brexit gloom and increased their profits.

Following is the list of 10 biggest bank:

Source: Business Insider

If we compare those top 10 biggest bank in the world with Nepalese bank, Nepalese banks stand nowhere. Following is the top 3 biggest bank of Nepal on the basis of Tier 1 capital

Source: Unaudited financial report of third quarter (FY 2075/76) of Nepalese banks

Although it will be unfair to compare the banks of Nepalese economy to the largest economies in the world, it is justifiable to ask the question, “Are Nepalese banks big enough for Nepalese economy itself?” Nepalese banks have to increase their capital comparing with Nepalese economy itself, if not with Asian banks or world’s largest banks. Data about world biggest economy and the inadequacy of capital in Nepalese bank justify the NRB in step toward the big merger. Merger and acquisition is essential to make banks healthier, more competitive and stronger.