THE ECONOMICS OF MONEY,BANKING, AND FINANCIAL MARKETS 313

CHAPTER 11

TA B L E 11- 5

Banking Industry: Structure and Competition 281

Largest Banks in the World, at Fiscal 2008

Bank

Country

Asset Rank

Assets ($ millions)

Royal Bank of Scotland

UK

1

4 287 263

Deutsche Bank

Germany

2

3 753 775

Barclays Bank

UK

3

3 664 838

BNP Paribas

France

4

3 537 536

HSBC Holdings

UK

5

2 961 123

Cr dit Agricole Group

France

6

2 742 333

JPMorgan Chase & Co.

USA

7

2 663 569

Mitsubishi UFJ Financial Group

Japan

8

2 480 831

Citigroup

USA

9

2 373 850

UBS

Switzerland

10

2 319 910

Royal Bank of Canada

Canada

33

883 128

Toronto-Dominion Bank

Canada

47

684 336

Scotiabank

Canada

48

614 290

Bank of Montreal

Canada

53

504 033

CIBC

Canada

60

427 677

Source: The Banker, July 2009, www.thebanker.com.

ministerial approval. However, Schedule III banks cannot take retail deposits (i.e.,
deposits less than $150 000) and, as a result, have the advantage of not being subject
to regulations that apply to full-service banks (such as requirements for CDIC insurance). Given that most Schedule II banks do little retail deposit gathering, it is likely
that in the future many Schedule II banks will become Schedule III banks.
The internationalization of banking, both by Canadian banks going abroad and
by foreign banks entering Canada, has meant that financial markets throughout the
world have become more integrated. As a result, there is a growing trend toward
international coordination of bank regulation, one example of which is the 1988
Basel agreement to standardize minimum capital requirements in industrialized
countries. Financial market integration has also encouraged bank consolidation
abroad, culminating in the creation of the first trillion-dollar bank with the merger
of the Industrial Bank of Japan, Dai-Ichi Kangyo Bank, and Fuji Bank, announced
in August 1999, but which took place in 2002. Another development has been the

importance of foreign banks in international banking. As is shown in Table 11-5,
in 2008, thirty-two of the largest banks in the world were foreign. The implications
of this financial market integration for the operation of our economy is examined
further in Chapter 20 when we discuss the international financial system in more
detail.