THE ECONOMICS OF MONEY,BANKING, AND FINANCIAL MARKETS 313

CHAPTER 11 TA B L E 11- Banking Industry: Structure and Competition 281 Largest Banks in the World, at Fiscal 2008 Bank Country Asset Rank Assets ($ millions) Royal Bank of Scotland UK 287 263 Deutsche Bank Germany 753 775 Barclays Bank UK 3 664 838 BNP Paribas France 537 536 HSBC Holdings UK 961 123 Cr dit Agricole Group France 742 333 JPMorgan Chase & Co USA 663 569 Mitsubishi UFJ Financial Group Japan 480 831 Citigroup USA 373 850 UBS Switzerland 10 319 910 Royal Bank of Canada Canada 33 883 128 Toronto-Dominion Bank Canada 47 684 336 Scotiabank Canada 48 614 290 Bank of Montreal Canada 53 504 033 CIBC Canada 60 427 677 Source: The Banker, July 2009, www.thebanker.com ministerial approval However, Schedule III banks cannot take retail deposits (i.e., deposits less than $150 000) and, as a result, have the advantage of not being subject to regulations that apply to full-service banks (such as requirements for CDIC insurance) Given that most Schedule II banks little retail deposit gathering, it is likely that in the future many Schedule II banks will become Schedule III banks The internationalization of banking, both by Canadian banks going abroad and by foreign banks entering Canada, has meant that financial markets throughout the world have become more integrated As a result, there is a growing trend toward international coordination of bank regulation, one example of which is the 1988 Basel agreement to standardize minimum capital requirements in industrialized countries Financial market integration has also encouraged bank consolidation abroad, culminating in the creation of the first trillion-dollar bank with the merger of the Industrial Bank of Japan, Dai-Ichi Kangyo Bank, and Fuji Bank, announced in August 1999, but which took place in 2002 Another development has been the importance of foreign banks in international banking As is shown in Table 11-5, in 2008, thirty-two of the largest banks in the world were foreign The implications of this financial market integration for the operation of our economy is examined further in Chapter 20 when we discuss the international financial system in more detail