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According to BloggingStocks, International and Commercial Bank of China (ICBC) overtakes JP Morgan Chase as the world’s number one bank. The banks is 75% owned by the Chinese government with Goldman Sachs Group Inc. (NYSE GS) owning 4.9%. Net profit last year increased 36% to Rmb 111 billion.

“How did they do it? Well in the end it is very simple, good old fashioned banking. Chinese banks earn 85% of their income from interest. You’ve got to be kidding, right? No, believe it or not it was interest income. The government sets the deposit rate and banks make its interest on the spread between the deposit rate and their lending rate. Now US bankers would be saying that the Chinese banking system is not sophisticated enough. Meanwhile US bankers are saying: “We’ve got to have derivatives and play fast and loose in the world markets. Who cares if we bring down the US economy.”

Chinese simplicity in its banking methods and ICBC in particular have overtaken JP Morgan Chase and Co. (NYSE JPM) and Citigroup Corp )NYSE C) ICBC has $1.3 trillion in deposits, JP Morgan Chase, $1 trillion and Japan’s Mitsubishi UFT Financial Corp $1.2 trillion. ICBC has 3.1 million corporate clients and a customer base of 190 million people.”

I was once indirectly affiliated with JPMC and I know that they are a world-class bank. They know what they are doing, firm with their decisions and they take good care of their customers. They survived the crisis just like ICBC. China’s traditional way works for them pretty well and now they emerged as the world’s number one bank. If that kind of approach won’t work for America’s fast-paced life, then I think it’s their prerogative. That’s essence of a free country right?