The World’s Most Indebted Finance Companies 2023
When it comes to finance companies, debt is a common term for the amount of money a company owes to its creditors. With global debt levels at an all-time high, many investors and analysts are wondering which financial institutions are most at risk of defaulting on their loans. The problem of excessive debt in the finance industry is a complex one, and it's important to understand the potential consequences of such high levels of indebtedness.
Many companies take on debt to fund their operations or invest in growth opportunities, but excessive debt can burden and lead to financial instability. This article will focus on the world most indebt companies as of 2023.
Finance Companies with the Highest Debt
Some finance companies have consistently been associated with high debt levels - even before the crisis; corporate debt grew substantially. Moreover, finance companies have been identified as having the highest debt levels of these industries, primarily due to the nature of their operations, which involve taking on debt to lend money to people and businesses.
These companies operate in different sectors and are based in other parts of the world. However, they all have one thing in common – they have taken on a significant amount of debt.
Federal National Mortgage Association - $4,222 trillion
As of 2023, the Federal National Mortgage Association (FNMA) is among the world financial company with the highest debt level, commonly known as Fannie Mae. This global company was established in 1938 and was headquartered in Washington, D.C. It operates in the secondary mortgage market and is responsible for purchasing and guaranteeing mortgage loans in the United States. Fannie Mae's debt is $4,222 trillion, making it the world's most indebted company. In addition, Fannie Mae ranks 9th among the companies with the most cash in the United States, with over $ 119.632 billion.
Apart from Fannie Mae, several other companies have significant debt levels. The top 10 companies with the highest debt as of 2023 are as follows.
Top 10 companies with the highest debt: Finance Companies
- Federal National Mortgage Association (Fannie Mae) - $4,222 trillion
- Federal Home Loan Mortgage Corporation (FMCC) - $ 3.146 trillion
- Bank of Japan (8301.T)- $ 902.436 billion
- Barclays (BCS) - $ 804.562 billion
- Bank of China (3988. HK) - $ 772.801 billion
- BNP Paribas (BNP.PA) - $ 725.907 billion
- Mitsubishi (MFZ.F) - $ 676.716 billion
- JPMorgan Chase & Co. (JPM)- $ 621.439 billion
- HSBC Holdings (HSBA.L) - $ 619.492 billion
- Bank of America Corporation (BAC) - $ 562.151 billion
Implications of High Debt Levels
High levels of debt can have significant implications for companies and their stakeholders. For example, companies with high levels of debt may struggle to access credit in the future, which could limit their growth prospects. Additionally, high debt levels can lead to financial instability, mainly if a company's earnings are insufficient to cover its debt payments.
Furthermore, high debt levels can affect a company's credit rating, making it more expensive to borrow money in the future. Credit rating agencies assess a company's creditworthiness by analyzing its financial position and debt levels. As a result, companies with high debt levels may receive lower credit ratings, making it harder for them to attract investors or lenders.
Implications of high debts level:
- Limited access to credit
- Financial instability
- Lower credit ratings
Conclusion
In conclusion, the financial services industry has the highest debt levels compared to other sectors, primarily due to its operations. For example, the Federal National Mortgage Association (Fannie Mae) is a global company with a debt level of $4,222 trillion. However, other companies, such as Freddie Mac, Barclays, and Bank of China, have significant debt levels. Companies with high debt levels face several challenges, including limited access to credit, financial instability, and lower credit ratings. Therefore, companies must manage their debt levels effectively to ensure long-term financial stability.
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List of the Largest Companies in the World rank by total debt.
| Rank | Company | Total Debt | Diff. next | Country |
|---|---|---|---|---|
| #1 | FEDERAL NATIONAL MORTGAGE ASSOCSymbol: FNMA | $ 4.222 trillion ($4,222,055,874,560.00) Four Trillion Two Hundred Twenty Two Billion Fifty Five Million Eight Hundred Seventy Four Thousand Five Hundred Sixty | $1.075 trillion more than FEDERAL HOME LOAN MORTGAGE CORP more by 34.18% | United States |
| #2 | FEDERAL HOME LOAN MORTGAGE CORPSymbol: FMCC | $ 3.146 trillion ($3,146,589,929,472.00) Three Trillion One Hundred Forty Six Billion Five Hundred Eighty Nine Million Nine Hundred Twenty Nine Thousand Four Hundred Seventy Two | $2.219 trillion more than BANK OF JAPAN NPV more by 239.3% | United States |
| #3 | BANK OF JAPAN NPVSymbol: 8301.T | $ 927.387 billion ($927,387,610,031.00) Nine Hundred Twenty Seven Billion Three Hundred Eighty Seven Million Six Hundred Ten Thousand Thirty One | $108.104 billion more than Barclays PLC more by 13.2% | Japan |
| #4 | Barclays PLCSymbol: BCS | $ 819.282 billion ($819,282,704,777.00) Eight Hundred Nineteen Billion Two Hundred Eighty Two Million Seven Hundred Four Thousand Seven Hundred Seventy Seven | $38.669 billion more than BANK OF CHINA more by 4.95% | United Kingdom |
| #5 | BANK OF CHINASymbol: 3988.HK | $ 780.613 billion ($780,613,065,799.00) Seven Hundred Eighty Billion Six Hundred Thirteen Million Sixty Five Thousand Seven Hundred Ninety Nine | $41.101 billion more than BNP PARIBAS ACT.A more by 5.56% | China |
| #6 | BNP PARIBAS ACT.ASymbol: BNP.PA | $ 739.511 billion ($739,511,867,100.00) Seven Hundred Thirty Nine Billion Five Hundred Eleven Million Eight Hundred Sixty Seven Thousand One Hundred | $44.084 billion more than MITSUBISHI UFJ FINL GRP more by 6.34% | France |
| #7 | MITSUBISHI UFJ FINL GRPSymbol: MFZ.F | $ 695.427 billion ($695,427,193,236.00) Six Hundred Ninety Five Billion Four Hundred Twenty Seven Million One Hundred Ninety Three Thousand Two Hundred Thirty Six | $73.988 billion more than JP Morgan Chase & Co. more by 11.91% | Japan |
| #8 | JP Morgan Chase & Co.Symbol: JPM | $ 621.439 billion ($621,439,025,152.00) Six Hundred Twenty One Billion Four Hundred Thirty Nine Million Twenty Five Thousand One Hundred Fifty Two | $1.946 billion more than HSBC HOLDINGS PLC more by 0.31% | United States |
| #9 | HSBC HOLDINGS PLCSymbol: HSBA.L | $ 619.492 billion ($619,492,999,168.00) Six Hundred Nineteen Billion Four Hundred Ninety Two Million Nine Hundred Ninety Nine Thousand One Hundred Sixty Eight | $35.354 billion more than Citigroup, Inc. more by 6.05% | United Kingdom |
| #10 | Citigroup, Inc.Symbol: C | $ 584.138 billion ($584,138,031,104.00) Five Hundred Eighty Four Billion One Hundred Thirty Eight Million Thirty One Thousand One Hundred Four | $21.987 billion more than Bank of America Corporation more by 3.91% | United States |
| #11 | Bank of America CorporationSymbol: BAC | $ 562.151 billion ($562,151,030,784.00) Five Hundred Sixty Two Billion One Hundred Fifty One Million Thirty Thousand Seven Hundred Eighty Four | $42.141 billion more than Goldman Sachs Group, Inc. (The) more by 8.1% | United States |
| #12 | Goldman Sachs Group, Inc. (The)Symbol: GS | $ 520.010 billion ($520,010,006,528.00) Five Hundred Twenty Billion Ten Million Six Thousand Five Hundred Twenty Eight | $9.585 billion more than Deutsche Bank AG more by 1.88% | United States |
| #13 | Deutsche Bank AGSymbol: DB | $ 510.424 billion ($510,424,176,930.00) Five Hundred Ten Billion Four Hundred Twenty Four Million One Hundred Seventy Six Thousand Nine Hundred Thirty | $16.144 billion more than CREDIT AGRICOLE INH. EO 3 more by 3.27% | Germany |
| #14 | CREDIT AGRICOLE INH. EO 3Symbol: XCA.F | $ 494.279 billion ($494,279,863,878.00) Four Hundred Ninety Four Billion Two Hundred Seventy Nine Million Eight Hundred Sixty Three Thousand Eight Hundred Seventy Eight | $24.191 billion more than AGRICULTURAL BANK OF CHINA more by 5.15% | France |
| #15 | AGRICULTURAL BANK OF CHINASymbol: 601288.SS | $ 470.088 billion ($470,088,692,739.00) Four Hundred Seventy Billion Eighty Eight Million Six Hundred Ninety Two Thousand Seven Hundred Thirty Nine | $38.624 billion more than CCB more by 8.95% | China |
| #16 | CCBSymbol: 0939.HK | $ 431.464 billion ($431,464,524,693.00) Four Hundred Thirty One Billion Four Hundred Sixty Four Million Five Hundred Twenty Four Thousand Six Hundred Ninety Three | $47.372 billion more than Banco Santander, S.A. Sponsored more by 12.33% | China |
| #17 | Banco Santander, S.A. SponsoredSymbol: SAN | $ 384.092 billion ($384,092,254,911.00) Three Hundred Eighty Four Billion Ninety Two Million Two Hundred Fifty Four Thousand Nine Hundred Eleven | $6.462 billion more than UBS GROUP N more by 1.71% | Spain |
| #18 | UBS GROUP NSymbol: UBSG.SW | $ 377.629 billion ($377,629,999,104.00) Three Hundred Seventy Seven Billion Six Hundred Twenty Nine Million Nine Hundred Ninety Nine Thousand One Hundred Four | $9.258 billion more than BANKCOMM more by 2.51% | Switzerland |
| #19 | BANKCOMMSymbol: 3328.HK | $ 368.371 billion ($368,371,647,243.00) Three Hundred Sixty Eight Billion Three Hundred Seventy One Million Six Hundred Forty Seven Thousand Two Hundred Forty Three | $906.642 million more than Morgan Stanley more by 0.25% | China |
| #20 | Morgan StanleySymbol: MS | $ 367.465 billion ($367,465,005,056.00) Three Hundred Sixty Seven Billion Four Hundred Sixty Five Million Five Thousand Fifty Six | United States |
Showing rank from 1 to 20 of 38101 companies