Banks play a significant role in the US economy. Wealth that is created by banks strengthens the national purchasing power which results in a more stable economy. Billions of dollars are paid in taxes by the banking sector each year. It also plays an important role in the economy as an employer – in 2013, 20 biggest banks in the US employed over 1.2 million people, from which 228,000 people were employed by JP Morgan Chase Co alone.
Role of the banks in the economy
Banks also play a significant role as an intermediary in our everyday life. Generally, banks have three main functions: it is a place where people can safely deposit their savings and earn interest; banks issue loans to people and businesses and banks are responsible for electronic payment system. Banks also do variety of other things, for example, help gaining access to capital to corporations as well as assist in mergers and acquisitions. Generally, banks are the intermediary between the ones who want to invest their money and those who have the idea on how to use it.
There are numerous banks and other financial institutions in the United States. In the years after the financial crisis, the US banks have grown substantially bigger. Currently, top 10 largest banks of the US hold USD 11.8 trillion in assets. Further we will take a look on the list of 10 biggest banking financial institutions in the US as of April 25, 2017.
List of the top 10 biggest banks in the U.S.A.
Below you can find a full list of top 10 biggest banks of the United States.
- JP Morgan Chase Co was formed in 1996 as a result of a merger of several companies. It is a multinational financial service provider with 94 branches in over 100 countries and headquarters in New York City. The largest bank in the US is also ranked 6th globally in terms of its asset base. Currently, JP Morgan Chase Co has an asset base of USD 2.35 trillion. It provides various financial services to millions of private customers, small and medium businesses as well as large corporations, institutions and even governments. Their services include commercial banking, investment banking, treasury bills and bonds, markets and investor services, private banking, investment management, wealth management and brokerage.
- Bank of America was formed in 1904 by Amadeo Giannini and it was initially known as the Bank of Italy. The bank is a multinational financial institution with 5,100 banking outlets and headquarters in Charlotte, North Caroline. With USD2.185 trillion it is currently the second biggest bank in US in terms of the asset base.
- Wells Fargo was founded in 1852 by Henry Wells and William Fargo. While it is only the third largest bank in US in terms of asset base, it was the largest bank in the world in terms of market capitalization in 2016. The bank had 8,700 retail branches across 35 countries and headquarters in San Francisco. The bank is well known for supporting several environmental programs and also has been charged for numerous economic crimes.
- Citigroup was founded in 1812 and currently has headquarters in Manhattan, New York. Citibank is the consumer division of the multinational Citigroup with 983 branches in North America alone. The bank’s services include retail banking, market insurance and credit cards. With total asset base of USD 1.801 trillion it is the fourth largest bank in the US. It experienced massive losses during the financial crisis and was rescued by the federal government and as of June 2012, it had the largest cash reserve among all commercial banks in the US.
- Goldman Sachs Group was established in 1869 by Marcus Goldman and Samuel Sachs. This bank is one of the few financial institutions that managed to generate profit during the financial crisis. Meanwhile, it was later charged with USD 5.06 billion fine for falsely assuring investors that the securities it sold were backed by quality mortgages. With USD 861 billion in assets Goldman Sachs Group closes the top 5 list of the US largest banks.
- Morgan Stanley with USD 807.5 billion in assets;
- U.S. Bancorp with USD 428.6 billion in assets;
- Bank of New York Mellon with USD 372.9 billion in assets;
- PNC Financial Services with USD 361 billion in assets;
- Capital One with USD 330.3 billion in assets.
