China, the United Kingdom, France, and the United States represent the largest portions of the global banking sector. China's two largest banks, the ICBC and CCB, control nearly $6 trillion worth of the global banking sector. All four of China's major banks appear in a list of the top 10 largest banks in the world as of 2015. Each of these banks represents a branch of the PBC, the centralized, state-sponsored bank of China.
The Banking Sector
Over in Europe, France, and the U.K, control sizable portions of the banking sector; in particular, the U.K.'s HSBC firm enjoys power over global banking sectors. Both countries exhibited roughly $5 trillion worth of influence each during the year 2014. Furthermore, each country predicts its financial sectors will continue experiencing growth during the next decade.
Though several banks in the U.S. have gotten quite large in North America, notably JP Morgan, for the most part, American banks have been unsuccessful in gaining control over the global banking sector. While the U.S. certainly enjoys more influence than the vast majority of nations, its control internationally pales in comparison to that of China, the U.K. or France.
Though typically not considered a major player in the global market, Japan has been a growing financial power during the last decade and reaps the benefits of a vibrant banking industry. The Mitsubishi UFJ Financial Group is Japan's largest bank, and it deals with nearly $2.5 trillion worth of revenue per year.
Germany also exhibits influence over a portion of the banking industry. The country's largest player by far is Deutsche Bank, which operates near $2.5 trillion in revenue per year as of 2014. German financial influence is limited outside of Europe, though it can be felt in some parts of North America and Asia. Within Europe, however, the German banking industry is one of the most powerful in the entire continent.
Percentage of Influence
Determining the exact percentage of influence a country holds over the global banking sector is a nearly impossible task. Changing exchange rates and political situations constantly shift the country holding the most power. However, most financiers agree that China's influence over the global banking sector is greater than the majority of countries. This is partially due to the country's massive population.
Furthermore, much of the country's financial sector is based around the profits from manufacturing and export. This gives the Chinese financial market a unique advantage due to its control over product supply chains. Furthermore, the Chinese financial sector is tied firmly with its government, which has done an admirable job in providing stability and promoting strategic growth since the 1970s.
As a whole, developing countries have very little influence over the state of the global financial sector. One World Bank study estimates that all the developing nations together only control 30% of the world's cash flow. This disparity is one of the biggest challenges faced by developing nations in their quests to grow and industrialize.