The largest bank in the world. The World Bank: history of creation, structure and activities. Reference. WB and other international organizations

(IMF) and the World Bank Group (WB).

The World Bank Group is made up of several organizations that perform different functions:

• International Bank for Reconstruction and Development (IBRD);
• International Development Association (IDA);
• International Finance Corporation (IFC);
• Multilateral Investment Guarantee Agency (MIGA);
• International Center for the Settlement of Investment Disputes (ICSID).

The Group's headquarters are located in Washington, DC, USA.

(IBRD) commonly known as the World Bank, is the main lending institution World Bank Group(created at the Bretton Woods Conference in 1944). In contrast, the WB provides loans for the economic development of countries. IBRD is the largest lender to development projects in middle-income developing countries.

(IDA), created in 1960. Its goal is to provide assistance to the poorest countries. Countries with a per capita GDP of no more than $835 are eligible for IDA loans. IDA provides interest-free loans with a 30-40 year repayment period and deferment of principal payments for the first ten years. More than 160 countries are members of IDA.

(MFK), created in 1956. Its purpose is to stimulate the work of the private sector in developing countries. IFC finances private sector projects. Lenders' interest rates vary by country and project. Loans are repaid within 3-15 years. Deferred payments are possible for the first 3-5 years. The IFC has more than 170 member countries.

(MAGI).(Created in 1982) The purpose of the organization is to assist developing countries in attracting foreign investment by providing investors with guarantees against political risks.

Such risks may include military action, civil unrest, and expropriation. MAGI provides a standard insurance policy that guarantees investments for 25 years. The maximum amount guaranteed for one project is $50 million. In addition, MIGA holds consultations with developing countries on issues of attracting foreign investment. More than 140 countries are members of MAGA.

(ICSID).(Created in 1966) The purpose of the organization is to stimulate the flow of investment by providing conditions for conciliation and arbitration negotiations between governments and foreign investors. ICSID provides advice and publishes papers on foreign investment law. About 130 countries are members of ICSID.

World Bank Group (IBRD, MAP, IFC, MIGA)

The World Bank Group (WBG) is a specialized financial institution of the UN, which includes several interrelated specialized UN organizations:

• International Bank for Reconstruction and Development - IBRD;
• International Development Association - MAP;
• International Finance Corporation - IFC;
• International Investment Guarantee Agency - MAGI.

The group is headed by a single leadership. The main goal of its activities is to provide financial support to developing countries and countries with economies in transition. Each of the institutes included in the group, independently from its own resources and on its own terms, carries out activities to finance investment projects, promoting the implementation of economic development programs of these countries. But each structure is guided by a common goal, and its activities are subordinated to the overall strategy of the Group.

Since its inception, the World Bank Group has become one of the world's leading investment centers, accounting for about half of the annual volume of investments allocated by international organizations to developing countries.

International Bank for Reconstruction and Development

International Bank for Reconstruction and Development - IBRD is the parent organization of the Group. Created in 1944 simultaneously with the IMF within the framework of the Bretton Woods agreements. The goals of the Bank declared in accordance with the Charter are defined as follows:

• promoting the development of member countries by encouraging foreign investment in the economies of developing countries;
• encouraging private foreign investment by issuing Bank guarantees or direct project financing;
• promoting the long-term balanced development of international trade and maintaining balances of payments through the development of the productive potential of the Bank's member countries with the help of foreign investment.

The Bank's financial resources consist of contributions from member countries to the authorized capital, banking profits from its activities, as well as funds raised in the form of loans on international loan capital markets.

The authorized capital is formed as a joint stock company by subscription to shares. Member countries pay 20% of the quota - 2% in freely convertible currency and 18% in national currency. The rest of the unpaid quota is a reserve fund, against which the Bank, by issuing bonded loans, borrows on the international capital market to finance the investment objects it lends. If necessary, the Bank may recover the unpaid portion of quotas from member countries. But in practice, the Bank has so far managed to attract more than 90% of its resources on the global financial market by issuing bonds.

The highest governing body of the IBRD is Board of Governors, and the executive body is the Directorate. Like the IMF, the Board of Governors is composed of finance ministers or central bank governors. To make important decisions, it meets once a year at a session together with the IMF.

Directorate consists of 24 executive directors. Five of them are appointed by the countries with the most votes: the United States, Japan, Germany, France and the United Kingdom. At the same time, the United States has 20% of the votes, which gives it the right of veto when voting on the most important issues, when 85% of the votes are required to make a decision. China, Saudi Arabia and Russia each elect one director per country. The remaining 16 directors are each elected from a group of countries. The Directorate elects the President of the Bank, traditionally a US citizen. The headquarters of the IBRD is located in Washington.

Currently, almost all countries are members of the Bank, which justifies its name as the World Bank.

Formally, this institution is depoliticized. It clearly declares the focus of its activities on promoting democratic development within the framework of an open market economy, economic growth, and the fight against poverty. But the methods of achieving goals are not without political biases of the leading Western countries that have a majority of votes in governing bodies. It is ensured by the principle of weighted voting: the number of votes of each country depends on its share in the authorized capital.

In addition, according to the constituent documents of the IBRD, in a number of cases it is obliged to focus on the decisions of the IMF. The monetary and financial policy pursued by the Bank's member countries must comply with the IMF Charter. Therefore, only those countries that have joined the IMF can be members of the IBRD.

Thus, the IMF and the World Bank, as two simultaneously created Brestton-Woods financial institutions, complement each other in their activities, but each of them performs its own specific functions.

The IMF regulates the foreign exchange system and facilitates external payments between member countries of the Fund through the mechanism of providing loans in foreign currency to equalize payment and settlement balances. IMF loans can be used by all members - both rich and poor countries, since the stability of the world monetary system depends on the financial situation of countries.

The IBRD is primarily a lending institution. Its goal is to help overcome poverty in developing countries, their economic growth and integration into the world economy. It provides loans only to developing countries.

The peculiarity of the Bank's credit policy is that it accumulates funds from the world capital market and, through this, issues loans to those states that have limited access to this market, either directly to their governments, or under government guarantees; in fact, it plays the role of an intermediary.

Without changing the purpose and mechanism of lending, the IBRD changes directions, methods and forms of activity depending on the conditions prevailing in the world and in individual regions, taking into account the accumulated experience.

After the Second World War, the Bank's activities were aimed at assisting in the reconstruction and development of the economies of Western European countries and Japan, and from the mid-50s, when the economies of these countries were restored, its activities moved to the developing world and aimed at the development of countries freed from colonial dependence.

Later, the Bank's activities expanded to countries with economies in transition.

Until the 1980s, the Bank mainly provided loans for project financing. Moreover, the Bank's loans covered no more than 30% of the cost of the loaned object. The rest of the costs must be covered from internal sources. This stimulates the investment process in the country. But the Bank's loans were of a tied nature. And, as critics noted, given significant disruptions in the economies of countries, project financing could not effectively influence the general economic situation in these countries.

The debt crisis that broke out in 1982 confirmed the correctness of such conclusions. And in the 80s, the Bank introduced the practice of providing untied loans to support economic reforms. But still, the leading role remains with project financing. In order to attract additional resources for the objects it lends, the IBRD practices joint financing. Co-investors have certain benefits when co-financing: the Bank carries out an examination of the project and removes the risk of non-payment.

Monetary and financial crisis of 1997-1998 influenced the Bank's credit policy. He refocused his activities on the region of Southeast and East Asia, which was the epicenter of the crisis. In fiscal year 1998, loans to countries in this region accounted for 1/3 of the Bank's total lending. At the same time, the share of loans not tied to specific objects increased significantly, from 27 to 39%. And a large amount of loans was allocated to the financial sector, its share was 22% versus 6% compared to the previous year.

After the collapse of the Soviet Union, the countries of the former republics of the USSR, as well as the states of Central and Eastern Europe, fell into the orbit of the IBRD. They also become recipients of Bank loans. The Bank provides them with loans for structural adaptation and to support economic reforms. These loans are not tied, are usually provided for specific programs and are disbursed faster.

The IBRD's requirements for issuing loans to support economic reform programs are similar to those put forward by the IMF. These are price liberalization, weakening state influence on the economy and reliance on private capital.

The bulk of IBRD loans to developing countries are directed to agriculture, since, according to management, it is in agricultural areas that the maximum poverty and backwardness are concentrated, the fight against which is the Bank’s primary task. The allocated loans are used for the development of agriculture, infrastructure, education, and healthcare. Much less loans are allocated for the development of manufacturing industries.

The IBRD provides loans for long terms from 15 to 20 years, which significantly exceeds the lending periods of commercial banks.

The cost of loans is determined by the conditions of the global financial market, since the Bank accumulates the bulk of its resources by issuing bonds. But the margin on loan funds is low, from 0.25 to 0.5%, since making a profit is not the purpose of the Bank’s activities.

The IBRD protects private capital, so loans provided by the Bank are also conditional. The Bank's requirements for borrowers are quite strict. They are required to create a favorable legal and administrative climate for the activities of TNCs, exempt foreign investors from taxes, and ensure the free export of profits. The borrowing country must significantly reduce or eliminate subsidies for domestic consumers, liberalize foreign economic activity, devalue the national currency, etc.

International Development Association

International Development Association(MAP) created in 1960 to expand the range of developing countries admitted to credit resources. Formally, it is independent from the Bank, but in fact it is its branch. They are led by a single governing body and one president.

By the 60s of the last century, a number of developing countries were identified for which IBRD loans were unavailable. Firstly, because of their high cost. And secondly, the lending conditions were unacceptable to them. These were the poorest, most backward countries. They needed preferential loans. The International Development Association was created by the Bank specifically to provide such countries with loans on preferential terms. Therefore, only those countries that are members of the IBRD and have a low per capita income are eligible to receive preferential loans. In 1997-1999 the per capita GDP limit giving the right to preferential lending was $925 per year.

MAP loans are provided in the national currency of the borrowing country only to state governments for a period of up to 35-40 years, with a grace period of 10 years. No interest is charged on loans. The borrower only covers administrative costs of 0.5% per annum.

MAP resources are generated from contributions from developed donor countries that are members of the organization and from the net profit of the IBRD.

Providing preferential lending conditions at the expense of these sources should not be considered as charitable activity. After all, the goal of the MDB is to fight poverty. And the lending mechanism on the Bank's terms turned out to be ineffective for a number of developing countries. By creating concessional lending opportunities through MAP, the Bank has significantly expanded its influence in developing countries.

The nature of loans provided by MAP is social in nature. The largest share in the structure of borrowed funds of its clients are loans for the development of healthcare, education, agriculture and rural areas. Unlike the IBRD, this organization practically does not allocate funds to the financial sector. Because MAP's clients are poor countries that are not integrated into the global financial market, they are not affected by financial crises.

Thus, in the strategic plan, IBRD and MAP perform common tasks, but the functions between them are divided.

International Finance Corporation

International Finance Corporation (IFC) established in 1956 as a specialized agency of the UN. Legally and financially it is an independent organization. However, in fact this is a branch of the IBRD. They have a common leadership. The highest body of the IFC is the Board of Governors, the duties of which are concurrently performed by members of the Board of Governors of the IBRD. The functions of the Chairman of the IFC Directorate are also concurrently performed by the President of the IBRD.

The purpose of the Corporation is to promote the development of the private sector in the economies of developing countries, attracting an influx of national and foreign investment into this sector.

Considering that the Bank does not lend much to industry, one of the main activities of the IFC is lending to industrial facilities. In this case, loans are allocated to the private sector without government guarantees. Since the organization takes on credit risks, it credits projects for no more than 25% of the cost and subject to the high profitability of these projects.

The Corporation provides borrowed funds for a period of up to 15 years, the interest rate is at the level of the average annual rates of the world capital market for similar loans. Loans are repaid in the same currency in which they were issued.

IFC resources are generated from various sources. Firstly, through contributions from member countries. The largest amount contributed

The USA, which initiated the creation of this organization, as well as England, France and other developed countries. Secondly, the IFC has at its disposal a number of funds that were created specifically to finance individual investment projects. In addition, the IFC has the right to attract external resources from the global capital market, like the IBRD. But the mechanism for attracting them is different. It acquires shares of companies and makes its own investments in the equity capital of enterprises being built in developing countries without the intention of gaining a foothold in them as an owner. The acquired assets are subsequently resold to private capital.

However, compared to IBRD and even compared to MAP, the financial resources available to the Corporation are significantly smaller. But despite its limited financial capacity, the IFC plays an important role in developing and strengthening the private sector in developing countries, in mobilizing investment resources in developing countries, and in shaping emerging stock markets.

Multilateral Investment Guarantee Agency

Multilateral Investment Guarantee Agency(MAGI) was formed in 1988 in addition to the IBRD to multilaterally guarantee foreign direct investment in developing countries. Capital in the amount of US$1 billion was generated by member countries.

MAGI guarantees the following types of investments:

• contributions in cash or in kind to share capital;
• loans provided by shareholders;
• some forms of non-equity direct investment.
• The warranty period is from 15 to 20 years. Guarantees can cover up to 90% of the investment.

The range of risks covered by MAGA guarantees is wide. The agency insures these investments against political risks in the event of wars, civil unrest, expropriation of the investor's property, failure to fulfill contractual obligations due to political decisions made by the government (for example, a ban on the import of goods into the country) and other political disasters.

Investments can be insured against non-commercial risks in the financial sector, such as, for example, the abolition of currency convertibility and the resulting obstacles to the withdrawal of profits from the country.

Failure to fulfill contractual obligations related to investments due to force majeure circumstances can also be insured by MIGA.

In addition to insuring non-commercial risks, MIGI advises government authorities of developing member countries on issues related to the development and implementation of policies and programs to attract foreign investment. To do this, it organizes meetings and negotiations between the governments of interested countries and international business circles.

Thus, IBRD, MAP, IFC and MIGA form four closely interconnected international financial institutions. They are united by a common goal of activity, which is to provide financial support to developing countries. Within the framework of this goal, each of them performs its assigned functions. Together they form the World Bank Group, the world's largest investment institution, whose mission is to fight poverty and underdevelopment in developing countries, promote economic growth and the development of market relations in these countries and countries with economies in transition.

They say that banks make the earth go round because they control money. Which world banks “spin” the planet the most?

Every year, rating agencies, analysts and financial companies compile ratings of the most reliable, profitable and successful banking companies, but the filtering criteria are very specific in order to confidently identify the largest bank in the world. That is why ratings are formed according to different parameters, and the same bank can be a leader in one criterion and lag behind in another. We analyzed banks in different countries according to key characteristics: the sum of all assets, market capitalization, capital, number of employees, brand value, countries of operation and number of years on the market - and identified the ten most significant, in our opinion, world banks.

INDUSTRIAL AND
COMMERCIAL BANK
OF CHINA (ICBC)

Headquarters
Beijing, China)

Year of foundation
1984

Assets
$3.42 trillion

Market capitalization
$224.08 billion

Capital
$274.43 billion

The number of employees
466,000 people

Jiang Jianqing,
Chairman of the Board of Directors and Chief Executive Officer of the bank

Chinese banks remain the largest corporations on earth. In 2016, the bank topped the Global 2000 ranking of the largest public companies, published annually by Forbes, for the fourth year in a row. ICBC controls a fifth of China's banking sector. More than 70% of the company is owned by the state. ICBC serves 4.11 million corporate customers and 282 million individual customers through 16,648 retail outlets throughout China, 239 overseas subsidiaries and a global network of more than 1,600 correspondent banks, as well as internet banking, telephone banking and self-banking services.

ICBC held its initial public offering at the end of October 2006 and raised a record $22 billion, making it the largest IPO in world history until 2010. ICBC's revenue for 2016 was $166.8 billion, net profit was $44.2 billion. In 2017, ICBC became the world's highest-ranked banking brand in The Banker magazine's annual Brand Finance Banking 500 ranking. This is the first time a Chinese bank has topped the Brand Finance Banking 500 in the history of the ranking. As of February 1, the value of the ICBC brand was $47.8 billion. The bank's representative office in Russia under the name Industrial and Commercial Bank of China (CJSC) has been operating since 2003.

JP MORGAN
CHASE & CO.

Headquarters
New York, USA)

Year of foundation
1799

Assets
$2.5 trillion

Market capitalization
$234.2 billion

Capital
$200.48 billion

The number of employees
240,000 people

James Dimon
President, Chairman of the Board of Directors

One of the oldest and most influential financial companies on the planet with more than 200 years of history. A rapidly growing conglomerate in the US banking sector. On the one hand, this is an international company providing banking and financial services - JP Morgan, working in the field of investments, assets and wealth management. On the other hand, there is Chase, which deals with credit cards and personal banking. The bank's branches operate in more than 100 countries around the world. Global GDP, according to The Economist, is $65 trillion. JP Morgan Chase has $70 trillion in derivative liabilities, the equivalent of the entire global economy. Based on the results of 2016, JPMorgan's assets supplanted the Bank of China as the world's fourth largest bank and rose to the top 5 in the Forbes Global 2000 ranking of the world's largest companies. Traces of JP Morgan Chase can also be found in Russian brands. In particular, the company invests in the Lamoda online store, owns a stake in the media company STS Media, the largest food retail chain Magnit, and shares in OJSC Bank Vozrozhdenie. As JP Morgan Chase & Co. has been present on the Russian market since the early 70s: Chase Bank opened a representative office in Moscow in 1973.

HSBC
HOLDINGS

Headquarters
London, Great Britain)

Year of foundation
1865

Assets
$2.41 trillion

Market capitalization
$133 billion

Capital
$153.3 billion

The number of employees
235,000 people

Stuart Gulliver
general executive director

London-based HSBC is one of the largest financial conglomerates in the world and the largest banking group in Europe by capitalization. The bank, originally founded to finance trade between Europe and China, today has over 10 subsidiaries that are engaged in all possible operations in the banking industry. Through a global network of more than 9,500 offices in more than 85 countries, HSBC provides a comprehensive range of financial services to nearly 125 million customers, including individuals, SMEs, large institutions, banks and high net worth individuals. clients. The company that was listed in the first ledger entry is still a customer of the bank today. In the Forbes Global 2000 ranking of the world's largest public companies in 2016, HSBC took 14th place. In 2016, the company's net profit amounted to $7.1 billion. In 2017, HSBC entered the TOP 10 most valuable banking brands in the world according to The Banker magazine in the annual Brand Finance Banking 500 ranking. As of February 1, the value of the HSBC brand was $20.7 billion. The company has a subsidiary bank in the Russian Federation - HSBC Bank (HSBC).

MITSUBISHI
UFJ FINANCIAL
GROUP

Headquarters
Tokyo, Japan)

Year of foundation
1880

Assets
$2.64 trillion

Market capitalization
$73.5 billion

Capital
$131.75 billion

The number of employees
108,153 people

Nobuyuki Hirano,
president and

The emergence of a bank that can compete with world leaders certainly means a lot for the entire Japanese banking sector. Mitsubishi UFJ Financial Group, Inc (better known as MUFG) was created as a result of the merger of Japan's second and fourth largest banks by assets, Mitsubishi Tokyo Financial Group and UFJ Holdings. It is one of the main companies in the Mitsubishi Group and one of the most diversified financial groups in the world.

MUFG is Japan's largest financial group, with total deposits of approximately $1.6 trillion. Today the bank serves 400 million client accounts in 40 countries, its network includes almost 1,400 branches. Mitsubishi UFJ Financial Group shares are traded on the New York and Tokyo stock exchanges, as well as on the Osaka Securities Exchange. At the end of 2006, the largest bank in Japan, Mitsubishi UFJ, announced the creation of a subsidiary bank in Russia, which will primarily focus on providing foreign exchange transactions and issuing loans to Japanese companies operating or starting to operate in Russia. According to Global Finance magazine, it became the “Best Corporate Bank” in 2015.

Headquarters
Paris, France)

Year of foundation
1848

Assets
$2.51 trillion

Market capitalization
$66.8 billion

Capital
$98.55 billion

The number of employees
189,000 people

Jean-Laurent Bonnaffet,
chief executive officer

Financial conglomerate, European leader in the global banking and financial services market. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg), where it ranks first in corporate cash management segments, and also has banking licenses in 12 Asian countries and a deposit base of €57 billion. In Asia, the bank received €3.2 billion in revenue, showing 65% growth over the three-year period. BNP Paribas Personal Finance is a leader in the field of consumer lending (more than 20 million active clients). The bank began operating in Russia in 2002, primarily focusing on financing the energy and raw materials sectors. In 2012, the consumer lending division was restructured and removed from BNP PARIBAS BANK JSC to create a joint venture with Sberbank in the field of POS lending - Cetelem Bank. In addition, the bank also owns 84.99% of the shares of the Ukrainian UkrSibbank. Today the bank operates in 80 countries around the world, serving a total of almost 32 million people. In 2016, according to Euromoney magazine, it won the most prestigious category “Best Bank in the World”, receiving the “Awards for Excellence” award. Also in 2016, BNP Paribas became the biggest mover in the industry, showing how in one year you can grow from 344th to 24th place in the Forbes Global 2000.

ROYAL BANK
OF CANADA

Headquarters
Toronto (Canada)

Year of foundation
1864

Assets
$1.18 trillion

Market capitalization
$90.67 billion

Capital
$107.9 billion

The number of employees
80,000 people

David Mackay
CEO, President, Director

A strong financial institution with more than 150 years of history, Canada's largest bank, which is also Canada's largest company. One of North America's leading diversified financial institutions. The bank serves 16 million private, corporate, government and institutional clients through offices in Canada, the United States and 35 other countries around the world. The bank's corporate culture is characterized by a strong focus on gender equality, which means a call to action to ensure an increase in the proportion of women in the workforce. As a result, Royal Bank is consistently recognized as one of Canada's Best Workplaces. From 1902, when the first woman was hired at the bank, until today, the proportion of female employees has reached 75%. The bank's logo, with its recognizable lion and globe, is one of Canada's most famous symbols. The lion symbol was brought to life as a mascot in the 1970s and continues to appear at all internal and company-sponsored events around the world to this day. In the 2016 Forbes Global 2000 list of the world's largest public companies, Royal Bank of Canada was ranked 52nd, including 33rd in assets, 50th in net income, 79th in market capitalization and 256th in turnover

BANCO
SANTANDER

Headquarters
Santander (Spain)

Year of foundation
1857

Assets
$1.43 trillion

Market capitalization
$71.25 billion

Capital
$105.96 billion

The number of employees
194,000 people

Jose Alvarez,
chief executive officer

Grupo Santander is the largest and main financial and credit group in Spain. In addition to Spain, Santander occupies a leading position in the UK and several Latin American countries, and also plays a significant role in Germany, Portugal, Poland and the north-east of the USA. Based on a business model that focuses on retail banking products and services for private clients and small and medium-sized enterprises, the bank currently serves more than 100 million customers through a global network of 14,700 branches. The bank has more than 3.3 million shareholders, and Banco Santander shares are the most liquid in Eurostoxx. In the 2016 Forbes Global 2000 list of the world's largest public companies, Banco Santander was ranked 37th, including 20th in assets, 66th in net income, 108th in market capitalization and 149th in turnover. In 2017, Banco Santander entered the TOP 10 most valuable banking brands in the world according to The Banker magazine in the annual Brand Finance Banking 500 ranking. As of February 1, the brand value was $15.9 billion.

COMMONWEALTH
BANK OF AUSTRALIA

Headquarters
Sydney, Australia)

Year of foundation
1911

Assets
$0.873 trillion

Market capitalization
$120 billion

Capital
$99.2 billion

The number of employees
45,948 people

Ayen Narev,
chief executive officer (CEO)

The financial conglomerate operates in Australia, New Zealand, Fiji, Asian countries, the USA and the UK. Australia's leading provider of integrated financial services and one of the best-known brands in the Australian financial industry. The bank operates through six business segments: retail banking, corporate banking, services for large institutional clients, Private Banking, international financial services and asset management, including insurance. It has the largest service network among Australian banks, consisting of more than 1,000 branches and 4,000 ATMs. Its businesses include New Zealand's largest bank, Australia's leading wealth management company, Australia's largest brokerage firm and a retail financial services company in Indonesia. As of 2016, it is the largest private company on the Australian Securities Exchange with over 800,000 shareholders. The Bank is known for its multiple environmental initiatives in developing marine science and reducing environmental pollution. In 2017, Commonwealth Bank was named the most resilient bank in Australia. According to Global Finance magazine, it became the “Best Corporate Bank” in 2015.

Sergio Ermotti,
Chairman of the Board (CEO)

The largest Swiss financial conglomerate, with more than 300 branches in Switzerland and representative offices in 54 countries. UBS is the abbreviation of its predecessor company, Union Bank of Switzerland. In 2011, UBS was named one of the world's 29 systemically important banks by the G20 Financial Stability Board, making UBS subject to special scrutiny and more stringent equity capital criteria. UBS plays a key role in preserving the Swiss banking tradition and is one of the first foreign banks to operate in the Russian market. In 1996, a representative office was officially opened in Moscow, and in 2006, the Russian subsidiary bank of UBS AG, UBS Bank LLC, was registered. The bank provides banking services to approximately 2.6 million private and 143,000 corporate clients, including institutional depositors, public corporations and charitable foundations in Switzerland, as well as 3,000 financial institutions worldwide. In 2016, UBS became a leader in three categories: “Best Investment Bank”, “Best Bank in the Equity Capital Market”, “Best IPO Bank”.
The number of employees
94,800 people

Roberto Egidio Setubal,
chief executive officer (CEO)

The bank operates in 21 countries: the largest of them are Brazil, Argentina, Chile, Paraguay, Uruguay, Great Britain, Portugal, USA, Japan and China. Currently, it has more than 32,000 service points, more than 5,000 bank branches and almost 46,000 ATMs in Brazil and in the world. The Bank is actively developing mobile services and more than 3.5 million users install them on mobile devices every month. Thanks to more than 90 years of history, today the bank serves about 60 million clients and more than 95,000 shareholders. It is a leader in private banking, transportation finance, and the credit card market (more than 1 million credit cards in Latin America). The Itaú Unibanco brand was chosen by Interbrand as the most valuable in the country. In the Global Finance ranking, the bank was named the best investment bank in Latin America, as well as the best bank in the field of mergers and acquisitions. Itaú is actively involved in social and cultural projects, in particular, it owns one of the largest private art collections in Brazil.

The World Bank will support the poorest countries in the current financial crisis, Mexican Finance Minister Agustin Carstens, Chairman of the Development Committee, said at a press conference in Washington.

The World Bank Group (WB) or World Bank is a multilateral lending institution consisting of several closely related financial institutions whose common goal is to improve the living standards of developing countries through financial assistance from developed countries.

The World Bank was officially created on December 27, 1945, after the majority of participating countries ratified the 1944 Bretton Woods agreements.

The World Bank began work on June 25, 1946, the first loan was issued on May 9, 1947 ($250 million was received by France for the reconstruction of the economy destroyed by World War II).

The World Bank's primary mission is to promote sustainable economic growth that leads to poverty reduction in developing countries by helping to increase output through long-term financing of development projects and programs. At the same time, his priorities are structural transformations: trade liberalization, privatization, education and healthcare reform, investment in infrastructure.

Each World Bank loan must be guaranteed by the appropriate government and, except in special circumstances, must be made for specific projects.

The main advantage of cooperation with the World Bank for the recipient country is significantly lower interest rates on loans compared to other international lenders. Another promising benefit for the recipient of WB assistance is that WB loans are followed by international loans.

The World Bank Group includes:

The International Bank for Reconstruction and Development (IBRD) is the main lending institution of the World Bank Group. IBRD is the largest lender to development projects in middle-income developing countries.

International Bank for Reconstruction and Development(IBRD) was established simultaneously with the International Monetary Fund (IMF) in accordance with the decisions of the International Monetary and Financial Conference at Bretton Woods in 1944. The IBRD agreement officially came into force in 1945, but the bank began operating in 1946.

International Development Association(IDA) is an organization that is part of the World Bank Group. Created in 1960. Its goal is to provide assistance to the poorest countries. Countries with a per capita GDP of no more than $835 are eligible to receive IDA loans.

International Finance Corporation(IFC) is an international financial institution that is part of the World Bank. IFC was created in 1956 to ensure a sustainable flow of private investment into developing countries.

Multilateral Investment Guarantee Agency(MAGI) is an autonomous international institution whose purpose is to facilitate foreign direct investment in developing countries, provide insurance and guarantees to private investors, and provide advisory and information services. MIGA was founded in 1988.

International Center for Settlement of Investment Disputes(ICSID), founded in 1995, promotes international investment flows by providing arbitration and dispute resolution services between governments and foreign investors.

Membership in the World Bank

A varying number of countries participate in the five financial institutions of the World Bank. Members of the International Bank for Reconstruction and Development (IBRD) are 184 states, that is, almost all countries of the world. The International Development Association (IDA) includes 163 states, the International Finance Corporation (IFC) - 175 states, the Multilateral Investment Guarantee Agency - 158 states, and the International Center for the Settlement of Investment Disputes (ICSID) - 134 states.

Russia became a full member of the World Bank Group in June 1992. In addition to the International Bank for Reconstruction and Development, Russia is a member of the International Finance Corporation (IFC), the International Development Association (IDA) and the Multilateral Investment Guarantee Agency (MIGA).

According to the World Bank's charter, strategic decisions require at least 85% of shareholder votes.

As of the end of 2007, the largest shareholders of the World Bank are the USA (16.4% of shares), Japan (7.9%), Germany (4.5%), Great Britain and France (4.3% each).

Every three years, the World Bank Group develops a framework document: the World Bank Group Strategy, which is used as the basis for cooperation with the country. The strategy helps link the bank's lending, analytical and advisory programs to the specific development goals of each borrowing country.

Management

President of the World Bank, head of the board of managing directors of the World Bank, head of the International Development Association, head of the board of directors of the International Finance Corporation, head of the Multilateral Investment Guarantee Agency - Robert Zoellick (holds this post since July 1, 2007).

The material was prepared based on information from RIA Novosti and open sources

(The World Bank) is an international financial organization created to organize financial and technical assistance to developing countries. In the process of its development, the World Bank has undergone various structural changes, so the term World Bank has meant different organizations at different stages. The World Bank is not a "bank" in the general sense of the word; it is an international community of shareholder countries with representatives on the Board of Executive Directors. These representatives determine the Bank's policies and supervise its activities.

Initially, the World Bank was associated with the International Bank for Reconstruction and Development, which provided financial support for the reconstruction of Western Europe and Japan after World War II. Later, in 1960, the International Development Association was created, which took over some of the functions related to the policies of this bank.

Currently, the World Bank actually refers to two organizations:

• , specializing in financing long-term projects under state guarantees;
• , which helps the poorest countries by providing long-term loans.

At different times, they were joined by three more organizations created to solve the problems of the World Bank:

• responsible for attracting investment in the private sector of the economy of developing countries;
• , providing investors with protection from government actions and local wars;
• , providing arbitration services in the field of investment.

All five organizations are members of the World Bank Group and are called World Bank Group. In some cases, the World Bank still refers to the International Bank for Reconstruction and Development, which still forms the basis of the World Bank's activities.

The World Bank is one of two (along with) large financial organizations created following a meeting held in the United States in 1944. Delegates from 45 countries discussed economic recovery and the structure of the world economy after World War II.

In the early stages of its activity from 1945 to 1968, the World Bank did not actively lend due to increased requirements for borrowers. Under the leadership of the bank's first president, John McCloy, France was chosen as the first borrower and was issued a loan in the amount of $250 million. Two other applicants (Poland and Chile) did not receive assistance. Subsequently, the World Bank took an active part in lending to Western European countries, which were actively restoring the economy destroyed by World War II, implementing. Funding for this plan came largely from the World Bank.

In 1968-1980, the World Bank's activities were aimed at helping developing countries. The volume and structure of loans provided increased, covering various sectors of the economy from infrastructure to solving social issues. Robert McNamara, who led the World Bank during this period, brought a technocratic management style to its activities, as he had leadership experience as the US Secretary of Defense and the president of Ford. McNamara created a new system for potential borrowing countries to provide information, which allowed them to reduce the time it took to decide on the terms of a loan.

In 1980, McNamara was replaced as president of the World Bank by Clausen at the request of then US President Ronald Reagan. During this period, financial assistance was provided mainly to third world countries. The period 1980-1989 was characterized by a lending policy aimed at developing third world economies in order to reduce their dependence on loans. This policy led to a reduction in loans provided to solve social problems.

Since 1989, World Bank policy has undergone significant changes under the influence of criticism from various non-governmental organizations, in particular those related to environmental protection. As a result, the range of loans provided for various purposes has expanded.

Main goals and objectives of the World Bank:

1. eradication of poverty and hunger;
2. ensuring universal primary education;
3. promoting gender equality and women's empowerment;
4. reduction in child mortality;
5. improving maternal health;
6. combating HIV/AIDS, malaria and other diseases;
7. ensuring sustainable development of the environment;
8. forming a global partnership for development.

Two closely related institutions within the World Bank - the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) - provide loans at low interest rates, zero interest rates, or in the form of grants to countries with no access to international or such access is subject to unfavorable conditions. Unlike other financial institutions, the World Bank does not seek profit. The IBRD operates on a market basis, taking advantage of its high income, which allows it to obtain funds at low interest rates, in order to provide loans to its clients from developing countries, also at low interest rates. The Bank covers operating expenses associated with this activity independently, without using external sources of financing.

Every three years, the World Bank Group develops a framework document: the World Bank Group Strategy, which is used as the basis for cooperation with the country. The strategy helps link the bank's lending, analytical and advisory programs to the specific development goals of each borrowing country. The strategy includes projects and programs that can have the greatest impact on solving the problem of poverty and contribute to dynamic socio-economic development. Before submission to the Board of Directors of the World Bank, the strategy is discussed with the government of the borrowing country and with other interested structures.

Through the IBRD and IDA, the World Bank provides two main types of loans: investment loans and development loans.

Investment loans are provided to finance the production of goods, works and services as part of socio-economic development projects in a variety of sectors.

Development loans(formerly called Structural Adjustment Loans) are provided through allocations to support policy and institutional reforms.

The World Bank provides not only financial support to member countries. Its activities are also aimed at providing analytical and advisory services needed by developing countries. Analyzing the policies pursued by countries and developing appropriate recommendations in order to improve the socio-economic situation in countries and improve the living conditions of the population is part of the work of the World Bank. The Bank conducts research on a wide range of issues, such as the environment, poverty, trade and globalization, and economic and industry research in specific sectors. The Bank analyzes the prospects for economic development of countries, including, for example, the banking and/or financial sector, trade, poverty and social protection systems.

We present to your attention the TOP 20 largest world banks in 13.01.2019 .

For several years in a row, the leading positions in this ranking have been occupied by Chinese banks, and this is quite natural, given the annual growth of the economy and productivity of the Celestial Empire.

Industrial and Commercial Bank of China (ICBC)

Assets: $4,009 billion.

Country: China.

Industrial and Commercial Bank of China (ICBC) is the largest bank in the world, is one of the “Big Four” financial institutions of the Celestial Empire, controls almost a fifth of the entire banking sector in China.

ICBC has $4,009 billion in assets at its latest and a market capitalization of $180.69 billion.

The bank was founded in 1984 and currently has more than 460 thousand employees. The company's headquarters are located in Beijing. More than 70% of the company is owned by the state.

China Construction Bank Corporation

Assets: $3,400 billion.

Country: China.

The second in our ranking, as well as the second largest, Bank of China was founded in 1954 and is literally referred to as the “Chinese Construction Bank”. According to the latest data, its assets are 3,400 billion dollars, and its market capitalization is more than 253.04 billion.

Initially, CCB was organized exclusively for government mutual settlements, but was later successfully repurposed as a commercial one. The company includes more than 14 thousand branches around the world, employing 372 thousand employees.

Agricultural Bank of China

Assets: $3,235 billion.

Country: China.

ABoC was founded in 1951 by Mao Zedong to help collective farms, peasants and workers. Currently, the bank has confidently gained a foothold in the field of commercial financial organizations in China and the world. The main office is located in Beijing, but the bank also has about 24 thousand representative offices throughout the country and even abroad.

The assets of Agricultural Bank of China total more than $3,235 billion, and the latest market capitalization is $203.96 billion.

Bank of China ltd

Assets: $2,991 billion.

Country: China.

Bank Of China is one of the oldest and most reliable in China. It was organized in 1912 and to this day remains a leader in the banking sector. More than 70% of the company is owned by the Chinese government, and the bank itself has branches in more than 20 countries.

According to the latest data, the bank's assets include about $2,991 billion, and its market capitalization is 180.69 billion.

Mitsubishi UFJ Financial Group

Assets: $2,780 billion.

Country: Japan.

The Japanese holding company has $2.78 trillion in assets, making it Japan's largest bank with a market capitalization of $111.66 billion. An expanded network of branches around the world allows MUFG to provide services to clients in 40 countries.

The company was founded in 2005 during the merger of two largest banks in Japan, and the headquarters of the current holding is located in Osaka.

JPMorgan Chase

Assets: $2,533 billion.

Country: USA.

JPMorgan Chase is one of the fastest growing and most influential US conglomerates in the banking sector.

The company was founded in 2000 as a result of the merger of several largest banks. The headquarters of JPMorgan Chase is located in New York in Manhattan. It is one of the largest investment banks in the world.

HSBC Holdings plc

Assets: $2,520 billion.

Country: Great Britain (England).

London-based HSBC is one of the largest banking conglomerates in Europe and the world, with assets of more than $2.52 trillion and a market capitalization of $154.75 billion.

Initially, it was created exclusively for mutual settlements between Europe and China and, to this day, remains key in these matters, however, it additionally has over 10 subsidiaries that are engaged in all possible operations in this industry.

BNP Pariba

Assets: $2,357 billion.

Country: France.

The European leader in financial, banking and insurance services BNP Paribas was founded in 1999. Currently, the company has representative offices around the world and main offices in Geneva, Paris and London.

This bank has assets of more than $2,357 billion with a market capitalization of $84.31 billion.

Bank of America (BoA)

Assets: $2,281 billion.

Country: USA.

BOA is the largest banking conglomerate in the United States, providing a wide range of financial services throughout the country and abroad. The company's headquarters is located in Charlotte, North Carolina.

According to the latest reports, Bank of America has $2,281 billion in assets on its balance sheet and a market capitalization of $325.33 billion.

Credit Agricole

Assets: $2,117 billion.

Country: France.

Crédit Agricole is one of the largest companies in France, which successfully controls most of the country's banking sector.

#11 – #20 largest banks

Candidate banks that can be included in the list of the 10 largest banks at any time.

*Some data may be inaccurate given the lack of, or limited access to, published reports for recent periods.

As you can see, not a single Russian bank is included in this list. The largest bank in the Russian Federation, Sberbank, has about 25 trillion rubles in its assets, which, translated at the current exchange rate, is $350 billion, and this, as you can understand, is significantly less than even Groupe BPCE, which is in the bottom twenty.

TOP 100 world banks by country

List of countries by the number of banks included in the “top 100 by total assets”.

What criteria are used to base the rating?

Every year, rating agencies, analysts and financial companies compile ratings of the most reliable, profitable and successful banking companies, but the filtering criteria are very specific in order to confidently identify the largest bank in the world. That is why ratings are compiled according to different parameters, and the same bank can be a leader in one criterion and, at the same time, an outsider in another.

Some of the most relevant parameters for comparing banking organizations are:

Sum of all assets– the total value of all monetary objects owned by the company, as well as monetary capital, which consists of the organization’s own funds, depositors’ money, interbank loans and funds received from the issue of bonds. This rating, as mentioned above, is based on the sum of all the bank’s assets.

Market capitalization– the total value of the company, taking into account all its divisions and commercial assets. A company's market capitalization is calculated based on the stock market value of its shares.

In addition, important criteria for the bank are also: operating and net profit, turnover, number of branches and employees in the company.