Key Charts - Too-Big-To-Fail
There’s More Than One Way to Rank the Biggest Banks
- Ranking total assets of global banks based on reported balance sheet data does not produce an apples-to-apples comparison.
- In most countries, banks rely on international financial reporting standards (IFRS) in their reporting, while in the U.S., banks typically use generally accepted accounting principles (GAAP).
- When derivatives are calculated on a gross, rather than net or U.S. GAAP basis, JPMorgan's assets expand from $2.4 trillion to $3.5 trillion, and the bank jumps to first place globally. Industrial and Commercial Bank of China, which is the world's biggest bank (according to IFRS standards), comes to a close second on U.S. GAAP basis.
Sources: BankScope, Bloomberg, and Milken Institute. Data as of Q1 2014.