Does an Italian bank 
use a business process 
management tool and
other technically advanced 
software like your bank in 
the USA?  When did banking 
begin, and in what country? 
How does the USA
compare in world rankings? 
Read on for a brief overview 
of world banking and statistics. 

The facts may surprise you.

Islamic banks forbid earning 
interest. Following Islamic code,
banks must strictly rule out accumulating interest and instead
earn profit from service and handling fees. China ranks #1, #2,
and #3 in the world for bank market capitalization. The USA
comes in at #5, following the UK. That's right, both China and
the UK are beating the USA in that category of finance. 

Anyone who has handled a bank account in another country knows
that banking processes are not all the same. Although most
Americans prefer to think of their bank as a trusted
government-like institution, banks are in fact just another
sector of business. Banking abroad can put an American into an
extreme state of "culture shock" after they are
slapped with hidden fees and unusual requirements. Despite
including moments of sheer terror, banking in another country
can pad your pocket book, too. Lower interest rates and tax
exemptions are reasons why the rich take their money offshore.
 
Banking traces back to the ancient Roman Empire, where
moneylenders would set up tables in the middle of cozy
courtyards, eating grapes and trading coins. The word bank
comes from the Italian word banco, which means
"desk"; These desks were merely the vessel for the
precious commodity that makes the world go round: cash. During
the time of the Roman Empire, bankers were doing little more
than converting foreign money into the Imperial Mint of Rome.

For centuries, banks dealt mainly with commercial and business
lending. Banking for every-day consumers is a relatively new
invention, and now a seemingly mandatory part of every person's
life. 

In Austria and other European countries, you pay a quarterly
fee just for the privilege of banking. Other fees and
restrictions apply. For example, bank accounts of the deceased
go directly to the state, who determines what portion, if any,
the surviving family may receive.

Who is on top? Which banks in the world have the most money?
Earlier I recounted that China is leading the world in market
capitalization, but Americans will be relieved to know that the
USA ranks #1 and #2 in the world for bank shareholder equity.
Who is biting at our heels in that category? The UK, coming in
at #3, Japan at #4, and France at #5. So the French really do
have a reason to act haughty. 

For the top banking assets in the world, sadly, the USA falls
out of of #1 again, landing at #3. In the lead is the UK at #1
and Switzerland at #2. The UK takes #1 again in the ranking of
Tier 1 capital, with 79 billion dollars in the HSBC Company. The
USA's powerhouse companies are Citigroup, Bank of America and JP
Morgan Chase, taking the rankings of #2, #3 and #4,
respectively.

Since the USA is not number one, on several counts,
diversifying your money in other countries' financial
institutions may not be a bad option. Of course, you will want
there to be a clear benefit to you, in interest or taxes, in
whichever foreign bank you choose.