EIGHT years ago Industrial and Commercial Bank of China ranked 32nd among the world's top 1,000 banks by Tier-1 capital, which is mostly common stock and retained earnings. Within two years it was in the top ten, and at the end of last year, according to recent figures published by the Banker, it displaced Bank of America as the world's biggest—the first time a Chinese bank has held that position. Notwithstanding China's recent financial hiccups, the country now boasts four of the world's ten biggest banks and 96 of the top 1,000. America can match China for top-ten banks, but Europe has just one: HSBC, which benefits greatly from its Asian operations. In China slowing growth, combined with continued credit expansion, could indicate troubles ahead. But given that the majority of equity in large Chinese banks is state-owned, and that the government has a history of bailing them out, such worries will probably not concern the country's depositors too much.
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