AMERICAN lender Wells Fargo has overtaken China’s ICBC as the world’s largest lender by market capitalisation, as growth in the US runs up against worries of a slowdown in the world’s second largest economy.
Wells Fargo is now worth around $237bn (£154.9bn), above ICBC’s $225bn, according to Financial News.
The Chinese lender has been the world’s biggest by market value since 2007, when it took the title from Citigroup.
Through the financial crisis the far-eastern nation’s banks appeared to prosper as the West’s lenders were crippled by bad loans built up in the pre-crisis boom years.
But worries over the strength of the Chinese economy and the quality of its banks’ loans have hit its lenders hard in recent months.
In particular worries are growing that loans to regional authorities have been badly spent, while parts of the country’s housing stock may be overvalued.
City A.M. Reporter