BNP Paribas Largest Bank In The World By Assets
To the astonishment of many, at this moment, the world’s largest bank, by assets, is not American or Swiss, but French. BNP Paribas Assets recorded in three years, an increase of 34% to 2240 billion euros of both assets totaling Bank of America Corp., the largest U.S. bank, and Morgan Stanley in one place. The French bank has also one of the lowest levels of capital ratios of European banks, which are subject to the Basel rules, said analysts at Morgan Stanley. Which means that BNP Paribas has complied with the prudential regulations and banking (Basel), which prevents credit institutions tend to make profits as large, in the shortest time possible, often giving the most basic preventative measures.
French Bank reported a profit growth, 46% in the third quarter of 2010 to 1.91 billion euros, exceeding analysts’ expectations. Friday, on the stock market, BNP Paribas shares rose more than 4.6%. Credit Institution announced financial results, while French politicians working on new banking rules, tougher and growth capital requirement. Societe Generale CEO (third largest bank in France), Frederic Oude said Friday before the French parliament, a bank that size does not necessarily mean a high risk. “Applying the standard capital (for all banks-no), as it intends to take her to France, Switzerland has no logic, because they could loan or squelching it could be more expensive,” argues Oude.
On the same position is also the French Central Bank Governor Christian Noyer. “The size of the bank is not the primary measure of risk, so regulators should not make rules by this criterion,” Noyer said. “If the banks in some countries have a higher risk profile and higher regulatory capital they require is their problem. Do not deduct from this that everyone must do the same thing, “concludes Christian Noyer.
France approved last month a law that increases the power of bank supervisors, they aim, in particular, the method of granting bonuses and rating of each credit institution. Starting in 2011, France will also introduce “a system of fees for large banks with high risk activities,” said French Finance Minister Christine Lagarde, appointed in 2009, the best Minister of Finance of the European Union.
The assets BNP Paribas, in the month of June, were equal to the aggregate of the Bank of America and Morgan Stanley, as Bloomberg notes. HSBC is also placed in runners for the first three banks in the world (1.976 billion), Barclays (1.938 billion), Royal Bank of Scotland (1,932 billion) and Bank of America (1.931 billion), all with 12% growth in 2007 56%. Société Générale is only ranked 15th worldwide, with assets of 1.133 billion euros, being brought forward among others by Credit Agricole (1.900 billion euros, number 7), JP Morgan (1.645 billion euros, 9th ) and Citigroup (1.583 billion, ranked 10th). Regulatory authorities around the world examine solutions to control the largest banks to avoid future situations where they need emergency financial support, without compromising recovery.
France adopted a relaxed attitude, even if the concern persists that the European sovereign debt may be new threats to financial stability. “The French are not seen.-Makers merely postpone the inevitable, but in a defensive attitude is not just the French,” said Carmen Reinhart, an analyst at the Peterson Institute for International Economics in Washington. Basel Committee for Banking Supervision gave nearly a decade for banking institutions to comply with tougher rules at the insistence of Germany and France, worried that they may not meet the new provisions before strengthening economies. Switzerland has pressed for stricter legislation, and Britain could adopt similar regulations, according to Morgan Stanley analysts.11