Global reach of the US financial sector
The global financial sector wields significant political and economic power both within the countries where financial institutions operate and on the international level.
The finance and insurance industry accounted for 7.2 percent—$1.26 trillion—of US GDP in 2014, and the US exported $87.3 billion in financial services. A small number of massive banks dominate the US financial sector, with the five largest banks collectively holding $6.9 trillion in assets—44.6 percent of total US bank assets.
The size and global reach of the US financial sector suggest that it has significant influence abroad, including in developing countries. Financial markets are considered critical to overall development; yet, major financial institutions employ policies and practices that undermine equitable growth and drive inequality. Financial institutions play a significant role in tax avoidance and evasion and the facilitation of illicit financial flows, reducing resources for critical public services. More than $1 trillion in illicit capital were transferred out of developing countries in 2013, exacerbating problems of corruption, causing inequitable tax burdens, and weakening incentives for legitimate private enterprise and investment.