India vs China - Banks
For this analysis, I will be looking at only the top 5 listed banks in each country. China The total assets of the Chinese banking industry are ~ USD 49 tn and system wide non-performing loans (NPLs) are at ~1.8%. Classication of NPLs is done using the Expected Credit Loss (ECL) model in IFRS accounting. Loan loss allowance is stipulated at 150% of NPLs. There are 23 banks greater than USD 10 bn market cap. For analysis, I will only be looking at the top 5 banks by market cap, which are Industrial and Commercial Bank of China (ICBC), China Merchants Bank (CMB), China Construction Bank (CCB), Agricultural Bank of China (ABC), and Bank of China (BOC). All but CMB are government owned. They constitute ~38% of total banking assets and ~ 54% of total banking profits. I have summarised the key financial and business metric in the table below (figures in USD bn except avg employee salary that is in USD). India The total assets of the Indian banking industry are ~ USD 2.7 tn and system wi