1. be almost as large as the entire GDP

1.     The Forbes global 2000 is an annual top2000 public companies ranking published by Forbes magazine. Companies from ThePeople’s Republic of China and United States of America comprise forty percentof the list.  American organisationsaccount for 565, followed by China and Hong Kong, which is home to 263 companies.

The world’s largest companies from 58 countries are represented. Most of thecompanies in top 25 belong to financial sector predominantly to the bankingsector.  Bankingis an industry that handles cash, credit and other financial transactions.Banks provide a safe place to store extra cash and credit. They offer savingsaccounts, certificates of deposit andchecking accounts. Banks use these deposits tomake loans. These loans include home mortgages,business loans and car loans.

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In simple words, Banking can be defined as thebusiness activity of accepting and safeguarding money owned by otherindividuals and entities, and then lending out this money in order to earn aprofit.Therise of purchasing power around the emerging economies have fast-tracked thegrowth of banking service sector. Out of top ten, six belong to banking andfinancial sector like Bank of America, JP Morgan chase, industrial andcommercial bank of china, agricultural bank of china. From1980s, the banking business multiplied. If you count all the assets andthe securities theycreated, it would be almost as large as the entire GDP of USA.

During thattime, the profitability of banking services grew faster. Banking represented 13%of all corporate profits during the late 1970s. By 2007, it represented 30percent of all the profits.

The largest banks grew the fastest. The ten largestbanks share of all bank assets increased from 26 to 45%. Their share ofdeposits also grew during that period, from 17 to 34%.

The growth of aneconomy plays a vital role in the financial stability of that economy. Let’scompare the case of India and Japan. The economic position of Japan is shaky asthe country recently came out of recession. The banking sector has taken themajor hit during this period. The interest rate offered by Japanese banks areless than 2-3% and surcharge levied of services are high. The scenario isexactly opposite in India.

Due to fast growth rate and high purchasing power,there is sort of competition within the banking sector to attract maximum depositsfor themselves. The interest rate in India is 8-9% to even double digit.