At the end of last year Industrial and Commercial Bank of China (ICBC) displaced Bank of America to become the world’s biggest bank by Tier-1 capital, which is mostly common stock and retained earnings. This is the first time a Chinese lender has occupied the top slot. Despite its recent financial hiccups, China now boasts four of the world’s ten biggest banks (the same number as America), whereas Europe and Japan have only one each. China’s slowing growth and continued credit expansion could signal troubles on the horizon. But such concerns are not likely to unnerve China’s depositors. The state owns most of the equity of China’s large banks. And the government has a history of bailing them out.
via http://www.economist.com
