Roles Of Banks In The Economy
The bank plays an important role in capital formation, which is essential for the economic development of a country. They have two principal tasks the first commercial banks facilitate. The transfer of payments between private households companies and government entities, as cash-only plays a minor role in our everyday lives.
Banks organize a large part of our monetary dealings through electronic transactions. This means without any banknotes or coins involved. The purpose is the exchange of economic goods and services for zero money or the settling of financial obligations. Companies pay wages tax contributions to social insurance systems suppliers invoices etc, electronically private households transfer rents and pay their gas and electricity bills while there zero accounts.
Everything we pay by credit card is also debited from our accounts. All of these money flows are made possible by the bank’s transfer of payments. Banks also have a second important function, to act as financial intermediaries for people and businesses that save money and those that need loans. In this context, commercial banks fulfill several functions their most important functions as intermediaries are the pooling of assets, maturity transformation, and the risk transformation for savers and providers of capital on the one side and borrowers and investors on the other. Therefore only a small portion of the money lent flows back to the bank every month.
A condition for the functioning of the maturity transformation of banks is that they have to have sufficient liquidity. Finally, banks transform many types of risks this is true when granting loans and also for other types of financial transactions.
The focus here is on the risk of default of a debit or of a counterparty by carefully evaluating potential borrowers and widely diversifying the savings deposits invested the bank minimizes. The risks for small savers and guarantees the full repayment of the amounts deposited. Additionally for a certain premium bank are willing to assume the risk of interest in the exchange rate fluctuations and commodity price fluctuations.
This is also part of the risk transformation function assumed by banks. A large number of customers and transactions make it possible to diversify maturities into risks. The aim of prudent lending is therefore to diversify both maturities as well as the risks as widely as possible.
1. JPMorgan Chase & Co. – Midtown Manhattan, New York City
JPMorgan Chase & Co. is an American financial services holding company and multinational investment bank headquartered in New York City, New York, United States. JPMorgan Chase is the largest bank in the United States and the 6th largest bank in the world with total assets of $2.737 trillion. JPMorgan Chase also the world’s most valuable bank by market capitalization of $390.934 Billion. JPMorgan Chase has more than 256,981 employees and operates in more than 100 countries around the world. JPMorgan Chase has more than 5,100 branches and 16,000 ATMs nationwide.
Total Assets: $2.747 trillion
Revenue: $115.627 billion (2019)
2. Bank of America – Charlotte, North Carolina
The Bank of America Corporation is an American multinational financial service and investment bank. The Bank of America headquartered in Charlotte, North Carolina, U.S. The bank also has important offices in New York City, Hong Kong, Minneapolis, Toronto, and London. The Bank of America second-largest bank in the US and the 8th largest bank in the world.
The Bank of America started as “Bank of Italy” but in 1930 name was changed and become Bank of America. Bank of America is a leader in digital banking technology they are one of the best in online banking and mobile banking functionality. The bank has about 4,400 retail financial centers and more than 16,000 ATMs in the United States. The bank recently launched approximately 8,500 cardless-enabled ATMs nationwide. The Bank of America has more than 204,489 employees and operates in more than 35 countries around the world.
Total Assets: $2.325 trillion
Revenue: $91.2 billion (2019)
3. Citigroup Inc. – Lower Manhattan, New York City
Citigroup Inc. is also known as Citi is an American multinational investment bank and financial services corporation headquartered in 388 Greenwich Street, New York City, NY 10013 U.S. Citigroup is the 3rd largest bank in the United States and 11th largest in the world. Citigroup Inc. is ranked 30th on the Fortune 500 as of 2019.
Citigroup has more than 200 million global customer banking accounts and operates in more than 160 countries. Citigroup is the world’s largest credit card provider with more than 140 million credit cards holder accounts. Citigroup has more than 214,000 employees but before the financial crisis of 2008, it has 357,000 employees worldwide.
Total Assets: $1.967 Trillion
Revenue: $74.3 billion
4. Wells Fargo – San Francisco, California
Wells Fargo is an American multinational financial service bank. Wells Fargo’s headquarters complex in San Francisco, California, with important offices throughout the United States. Wells Fargo was the world’s 4th largest bank by market capitalization and the 4th largest bank in the US. Wells Fargo was founded in 1852 by Henry Wells and William Fargo.
Wells Fargo had more than 8,500 branches and over 13,200 ATMs worldwide. Wells Fargo Bank is the largest U.S. employer in the banking sector with over 230,500 employees with operations in more than 35 countries. Wells Fargo has more than 70 million customers worldwide.
Total Assets: $1.927 trillion
Revenue: $85.063 billion (2019)
5. Goldman Sachs – Manhattan, New York City
The Goldman Sachs Group, Inc., is an American multinational global investment bank and financial services providing company. Goldman Sachs Headquarters, at 200 West Street, in Manhattan, New York City, U.S. Goldman Sachs is a leading company to provide services in asset management, investment management, prime brokerage, securities, and securities underwriting.
After launching Marcus, its online bank gives customers fixed-rate, fee-free personal loans, and high-value savings accounts. Goldman Sachs is one of the largest investment banking companies in the globe. Goldman Sachs was founded in 1869 by Marcus Goldman and Samuel Sachs. Goldman Sachs has more than 36.600 employees globally with operations over 30 countries.
Total Assets: $1.298 trillion
Revenue: $36.546 billion (2019)
6. Morgan Stanley – New York City
Morgan Stanley is an American multinational investment bank and financial services providing company. Morgan Stanley headquarters in The Morgan Stanley Building at 1585 Broadway, Midtown Manhattan, New York City, US. The company offers its services to governments, corporations, institutions, and individuals.
Morgan Stanley was ranked 67th in the 2018 Fortune 500 list of the largest United States corporations by total revenue. The original Morgan Stanley founded in 1935 by J.P. Morgan & Co partners Henry Sturgis Morgan, Harold Stanley, Dean G. Witter, and Richard S. Reynolds, Jr.
Morgan Stanley provides services in investment management, wealth management, Prime brokerage, and institutional securities. Morgan Stanley has more than 500 offices and 16,000 Financial Advisors around the world With operations in more than 42 countries and more than 60,000 employees worldwide.
Total Assets: $853.531 billion
Revenue: $40.107 billion (2018)
7. U.S. Bancorp – Minneapolis, Minnesota
U.S. Bancorp is an American bank holding company and parent company of U.S. Bank. The company headquarters in US Bancorp Center, Minneapolis, Minnesota, United States. U.S. Bancorp is the fifth-largest commercial bank by assets in 1863 as the First National Bank of Cincinnati. The firm provides investment, banking, trust, mortgage, and payment services products to businesses, individuals, governmental entities, and other financial institutions.
The U.S. Bancorp has more than 3,067 branches and over 4,771 ATMs nationwide. The U.S. Bancorp was founded on September 9, 1968, by Richard Davis. The Company also has more than 74,000 employees in the United States. The U.S. Bancorp key feature is they don’t charge overdraft fees on debit card purchases that are less than $5.
Total Assets: $488.000 billion
Revenue: $22.057 billion (2017)
8. Truist Financial – Charlotte, North Carolina
Truist Financial Corp. is an American 8th largest bank holding company. The company headquarters in Charlotte, North Carolina, United States. The company was formed recently in December 2019 as the consequence of the merger of BB&T and SunTrust Banks. The company provides asset management, mortgage, securities brokerage, and insurance services to consumer and commercial banking.
Its subsidiary, BB&T Insurance Services was one of the largest insurance brokers in the world. Truist Financial operates more than 1,800 branches in the United States. The company has more than 37,000 employees nationwide. Truist Financial Corp. was founded in 1872 by Alpheus Branch and Thomas Jefferson Hadley.
Total Assets: $447.7 billion (2019)
Revenue: $11.651 billion (2018)
9. PNC Financial Services – Pittsburgh, Pennsylvania
PNC Financial Services Group, Inc. is an American Banking and Financial services providing company. The PNC Bank headquarters in Tower at PNC Plaza Pittsburgh, Pennsylvania, United States. PNC Bank has more than 2,481 branches and 9,051 ATMs worldwide. The company provides wealth management, asset management, loan servicing, estate planning, and information processing.
PNC Financial Services is the 9th largest bank in the United States by its total assets. It is the 5th largest bank in the United States by the number of branches, 6th largest by deposits, and 4th largest in the total number of ATMs nationwide. PNC Financial Services Group, Inc. was founded on April 10, 1845, but operational on January 28, 1852. The company has more than 53,000 employees all over the world.
Total Assets: $392.768 billion
Revenue: $16.329 billion (2017)
10. TD Bank, N.A. – Cherry Hill, New Jersey
TD Bank is an American national bank and subsidiary of the Canadian multinational Toronto-Dominion Bank. TD Bank is the 7th-largest bank by deposits and 8th largest bank in the United States by its total assets. The company headquarters in Cherry Hill, New Jersey, United States. TD Bank primarily operated on the East Coast of the United States, in fifteen U.S. states and Washington, D.C.
TD Bank was founded in 1852 by Toronto-Dominion Bank in Portland, Maine, United States. TD Bank has over 26 million customers with more than 2,400 retail branches worldwide. TD Bank has more than 80,000 employees in the world.
Total Assets: $384 Billion
Revenue: $10,340 Billion (Not Conformed)
11. Capital One – McLean, Virginia
Capital One Financial Corporation is an American Financial service providing company. Capital One specialized in savings accounts, auto loans, credit cards, and banking. The company headquarters in Capital One Tower, McLean, Virginia, United States. The Capital One bank has 755 branches including 30 café style locations and more than 2,000 ATMs nationwide.
Capital One was the 11th largest bank in the United States by its total assets. Capital One was the 5th largest credit card issuer bank by purchase volume, after JPMorgan Chase, Bank of America, American Express, and Citigroup. Capital One Financial Corporation founded in 1994 by Richard Fairbank and Nigel Morris in Richmond, Virginia, United States. The company has more than 49,000 employees all around the world.
Total Assets: $372.538 billion (2018)
Revenue: $28.076 billion (2018)
12. The Bank of New York Mellon – New York City
BNY Mellon is an American multinational financial service and banking facility providing company. BNY Mellon is the world’s largest custodian bank and asset servicing company. The company headquarters at 240 Greenwich Street, Manhattan, New York, United States. The company provides Corporate banking, Global wealth management, investment banking, private equity, and financial analysis to the government institution and individuals.
The Bank of New York Mellon is the oldest continually operating bank in the United States Established in 1784. BNY Mellon founded on July 1, 2007
Total Assets: $362.87 billion (2018)
Revenue: $16.39 billion (2018)
13. Charles Schwab Corporation – San Francisco, California
The Charles Schwab Corporation is an American multinational financial service providing company. The company headquarters in Financial District, San Francisco, United States. Charles Schwab is the 13th largest banking institution in the United States by its total assets. Charles Schwab is the 3rd largest asset manager in the United States, behind BlackRock and Vanguard.
The Charles Schwab very popular for its electronic trading platforms financial specialist training, and discount brokerage services, especially decreased and free exchanging commission charges. Charles Schwab provides wealth management, stock brokerage, and commercial banking Consultant services to retail and institutional clients.
Charles Schwab & Co. founded in 1971 by Charles R. Schwab. In 1994, Charles Schwab starts offering an online trading facility that boosts bank growth so much. Charles Schwab has more than 19,500 employees and operated in 345 branches, primarily in the United States and the United Kingdom.
Total Assets: $296.482 billion (2018)
Revenue: $10.132 billion (2018)
14. State Street Corporation – Boston, Massachusetts
State Street Corporation is an American multinational bank holding and financial service providing company. The company headquarters at One Lincoln Street, in Boston, Massachusetts, United States. State Street Corporation is the 2nd-oldest continually operating bank in the United States after The Bank of New York Mellon.
State Street Corporation was founded in 1792 and control by Joseph L. Hooley (Chairman) Ron O’Hanley (President and CEO). State Street Corporation is one of the largest asset management companies in the world with $2.500 trillion under management and US$31.65 trillion under custody and administration.
State Street Corporation operates in more than 26 countries worldwide with more than 40,142 employees.
Total Assets: $244.626 billion (2018)
Revenue: $11.982 billion (2018)
15. American Express – New York City
The American Express is an American multinational banking and financial service providing company. The company headquarters at 200 Vesey Street in New York City, New York, United States. The American Express is very popular in its credit card, charge card, and traveler’s cheque businesses.
The American Express had 114.5 million cards in force, including 54.8 million cards alone in the United States. In 2017, Forbes selected American Express as the 23rd most valuable brand on the planet estimating brand worth is $24.500 billion.
In 2018, Fortune ranked American Express as the 14th most admired company around the world, and the 23rd best company to work for. The American Express founded on March 18, 1850, by William Fargo, Henry Wells, and John Warren Butterfield. The Company has more than 2,000 offices and operates in more than 40 countries with over 59,000 employees all around the world.
Total Assets: $197.502 billion
Revenue: $43.556 billion (2019)
16. Ally Financial – Detroit, Michigan
Ally Financial is an American Banking and Financial service providing company. The company headquarters at Ally Detroit Center in Detroit, Michigan, United States. Ally Financial provides financial services including online banking, car finance through a direct bank, mortgage loans, vehicle insurance, corporate lending, and an electronic trading platform to trade financial assets.
Ally Financial is the largest car finance company in the U.S. by volume and serves over 6 million customers. Ally Financial was founded in 1919 by General Motors. The company has more than 8,700 employees in the United States.
Total Assets: $180.844 billion (2019)
Revenue: $6.394 billion (2019)
17. MUFG Union Bank – New York City
Union Bank is an American banking and financial service providing company. The company headquarters at 1251 Avenue of the Americas in New York City, United States. MUFG Union Bank has 398 branches in California, Washington, and Oregon which is wholly owned by MUFG Bank, Ltd. MUFG Union Bank founded in 1864 (as The Bank of California), 1996 (as Union Bank of California), and 2008 (as UnionBank). The company has more than 12,141 employees in the United States.
Total Assets: 170.14 billion (2019)
Revenue: $5.28 billion (2016)
18. Fifth Third Bank – Cincinnati, Ohio
Fifth Third Bank is an American banking and financial service providing company. The company headquarters at Fifth Third Center in Cincinnati, Ohio, United States. It’s subsidiary company Fifth Third Bancorp is one of the largest consumer banks in the Midwestern United States.
The company operates over 1,154 branches and more than 2,469 ATMs in Ohio, Indiana, Michigan, Florida, Kentucky, Illinois, West Virginia, Tennessee, Georgia, and North Carolina. The name “Fifth Third” is gotten from the names of the bank’s two previous companies, Third National Bank and Fifth National Bank, which merged in 1909. The company has more than 18,125 employees in the United States.
Total Assets: $167.193 billion
Revenue: $7.713 billion (2017)
19. Citizens Financial Group – Providence, Rhode Island
Citizens Financial Group, Inc. is an American banking and financial service providing company. The company headquarters in Providence, Rhode Island, United States. Citizens Financial Group operates in the states of Connecticut, Maine, Michigan, Delaware, Massachusetts, New Hampshire, New York, Ohio, New Jersey, Pennsylvania, South Carolina, Rhode Island, and Vermont. Citizens Financial Group operates more than 1,200 branches and over 3,200 ATMs across 11 states under the Citizens Bank name.
Total Assets: $161.518 billion (2019)
Revenue: $6.128 billion (2018)
20. BMO Harris Bank – Chicago, Illinois
BMO Harris Bank is an American bank holding company headquarters in Chicago, Illinois, United States. BMO Harris Bank is a member of the Federal Reserve System and operates branches in the states of Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, and Wisconsin. BMO Harris Bank has over 600 branches and 1,300 ATMs and over 14,500 employees in the United States.
Total Assets: $157.000 billion
Revenue: $137.9 billion (Not Conformed)
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