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China’s banking system is distinct from those in Western countries since it is a one-of-a-kind model that works well for the country’s economic aims. The Industrial and Commercial Bank of China (ICBC), the China Construction Bank (CCB), the Agricultural Bank of China (ABC), and the Bank of China (BOC) are the four biggest banks in the world by assets. They own more than $23 trillion in assets, which is around $23.17 trillion according to the S&P Global rankings from April 2025. They have a lot of power over China’s money because they are mostly owned by the government. The government uses them to give credit to essential areas, such as infrastructure, agriculture, industry, and trade with other countries.
Here are the profiles of the Big Four:
1. The ICBC (Industrial and Commercial Bank of China) provides
all kinds of banking services for people and businesses. The world’s biggest bank by total assets (around $6.69 trillion as of April 2025) is usually at the top of the list of banks around the world.
2. The China Construction Bank (CCB) is a worldwide company that works on huge projects, infrastructure, and housing. The entire quantity of assets is roughly $5.56 trillion. This is vital for China’s growth through construction and moving to cities.
3. The ABC, which stands for the Agricultural Bank of China. Its focus is small and micro companies in the agricultural and rural sectors. This bank has the most retail branches in China. The total assets are roughly $5.92 trillion, which is a lot of money for rural development and inclusive financing.
4. The BOC, or Bank of China.  International finance, foreign exchange, and trade settlement are the main areas of focus. These are the most worldwide.Important Note: The corporation works in more than 60 countries and has assets worth around $4.80 trillion.
The government owns most of these banks, and they are vital for carrying out the government’s economic policies. They provide a lot of different services to people, businesses, and customers from other countries. This helps China reach its aims at home and around the world by increasing its trade and investment.
China’s banking system is different from the market-driven, privately owned model that is typical in Western countries (including the US, UK, and Europe) since it is based on state control and policy.
Here are some of the significant differences: Ownership and Control: Most of China’s Big Four firms are owned by the Chinese government, and Central Huijin and other groups have major stakes in them. This makes it feasible to directly help the country reach its goals, including getting money for huge infrastructure projects or helping rural areas thrive. The major Western banks, on the other hand, are primarily privately owned. These banks include JPMorgan Chase (the 5th largest in the world with almost $4 trillion in assets), Bank of America, HSBC, and BNP Paribas. They make judgments based on how much money they can make for shareholders, how much money they can make, and how competitive the market is.
Lending Priorities: Chinese banks often lend money to important sectors, like Belt and Road projects, green energy, or state-owned businesses, even if the risks are higher or the profits are lower. They do this because they know the government will back them up. The government uses markets to get what it wants in its “market economy.” When lending money, Western banks use standards that take into account risk and maximize profit. They also have stricter regulations about whether a business can make money and the government is less involved in choosing who gets credit.
Approach to Financial Stability and Risk State ownership prevents against crises (like the 2023 SVB crisis in China), because the government can act promptly. But directed credit can lead to difficulties, such as loans that aren’t being paid back. In the West, independent regulation, market discipline, and holding shareholders accountable are very important. This makes companies more susceptible to changes in the market, but it could also make them more inventive when it comes to pricing risk.
Size and Global Role: The Big Four Chinese banks have more assets than a lot of big Western banks put together. This provides them a lot of money to spend on huge initiatives at home and around the world. Western banks commonly have the largest market capitalization (for example, JPMorgan is often at the top of global lists) because they make more money and investors trust market-oriented tactics.
Rules and Market Focus China’s system is still primarily centered on banks, and the capital markets aren’t very well developed. The government also has a lot of say over loans and interest rates. Because their capital markets are more developed and they are more open, Western systems are more diverse. This policy, which is headed by the government, has helped China build its economy swiftly by getting a lot of resources for infrastructure, agriculture, manufacturing, and financing around the world. In a lot of places, private-market incentives alone might not be enough. Western models emphasize competition to foster efficiency and creativity, whereas China’s model is more effective for sustained, coordinated growth.
