The Brand Finance Banking 500 survey, which quantifies the brand value of banks around the world, has recently been published. As the world economy remains highly unpredictable and financial services continue to attract intense scrutiny, this survey assumes even more importance.

Zhang Chengliang / China Daily

The Brand Finance Banking 500, first published in 2006, in association with the magazine The Banker, was the first publicly available study analyzing the financial value of the world's top banking brands. It is published annually and incorporates data from all listed companies globally. Each brand is accorded a brand rating, a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set as well as a brand value: a summary measure of the financial strength of the brand.

The report analyzes the market values of brands as intangible financial assets that drive demand and build business relationships. Brand Finance analyzes the royalties that a corporation would have to pay to license its brand if it did not own it, thus establishing the cost from which a bank is relieved through owning its brand.

While Hong Kong and Shanghai Banking Corporation (HSBC) grabs the headlines by knocking Bank of America from the top spot to become the world's most valuable banking brand, it is the continued presence of Chinese banks at the top of the table that is most remarkable. China Construction Bank (CCB), the Industrial and Commercial Bank of China (ICBC), Bank of China and the Agricultural Bank of China all comfortably made the top 20. In addition, there are more banks from the BRIC countries (Brazil, Russia, India and China) in the top 20 than there are from Europe.

Chinese banks' impressive performance starts with China Construction Bank ranked 10th most valuable global banking brand, immediately followed by ICBC at 11th, and Bank of China not far behind at 15th and the Agricultural Bank at 18th. Furthermore, there are six Chinese banks in the top 50 banking brands, with Bank of Communications improving from 36th last year to 32ndthis year and China Merchants Bank up from 56 last year to 47 this year.

It is not just the most well-known, established Chinese banks that have caught the eye in this year's survey. Shanghai Pudong Development Bank has risen from 92nd last year to 62nd this year, and Hang Seng Bank now occupies 65th place, up from 80th a year ago. Minor improvement can also be seen with China CITIC Bank (74th 2011, 69th 2012), and China Minsheng Banking Corporation (89th 2011, 74th 2012).

Few other countries can boast 10 banking brands in the top 100. So why are so many Chinese banks becoming more valuable and challenging the most famous global banking brands?

Clearly, Europe continues to be beset by economic uncertainty and the continuing troubles of the eurozone, and this has contributed, not inconsiderably, to the miserable performance of European banks, which make up 16 of the 20 banks that have fallen in the table.

US banks fared well when compared with their European counterparts, with Wells Fargo holding firm in second place and strong performances from Citi Group and American Express in sixth and seventh place respectively. With five of the top 10 most valuable banking brands having their headquarters in North America, the US is recovering from the financial crisis much more quickly than Europe.

It is certainly the case that Chinese banks remain a relatively less integrated part of the global financial sector and also true that their exposure to eurozone debt is relatively minor. Both of these factors have undoubtedly helped Chinese banks, but this does not tell the full story behind their relatively rapid international emergence. There are five further, key reasons behind this trend:

Prudent, conservative financial management: Traditional Chinese cultural values also explain the rise of Chinese banks. The eurozone debt crisis and the global financial crisis have affected Chinese banks but not that much due to far more careful and visionary strategic management. Chinese banks work very closely with the Chinese central government and continuously map out a range of possible economic scenarios. It is this attention to detail, coupled with consideration of all possible eventualities that has, above all, enabled Chinese banks to weather recent economic storms well.

An outward-looking, international orientation: In addition to the maintenance of traditional Chinese cultural values, Chinese banks have also adopted and assimilated a modern, global perspective. Much of my corporate training in China over recent years had involved Chinese banks, and a clear picture has emerged of a change in management style. The senior managers at many Chinese banks do not now regard their organizations as simply Chinese, operating in China only, but are preparing and implementing very carefully laid international expansion plans. Many of these senior managers have substantial overseas experience and have attained an extremely high level of understanding of the international banking and business environment.

Close working relationship with government: Chinese banks appear to be able to foresee economic turbulence before their international rivals do and adapt accordingly. This is probably partially due to a very close working relationship with the Chinese government's economic analysts and forecasters. The Chinese government has not only masterminded probably the greatest yet sustained economic development in history, it has also coordinated a very soft landing for the country's inevitable economic slowdown. So Chinese banks have benefited from shrewd government understanding of the world economy.

In contrast, many of the most famous banking casualties in recent years, such as Lehman Brothers and Royal Bank of Scotland, appear to have shunned government support and advice until it was too late.

Increasingly financially literate Chinese public: As China's economy pushes on and on, now the second largest in the world, so has the knowledge that more and more members of the Chinese public has of the financial services sector. As a result, Chinese customers have chosen wisely and continued to opt for the financially far more robust Chinese banks. Chinese consumers are also far more aware of the full range of financial services on offer and invariably remain loyal to the most established Chinese service provider.

Economic emergence of second- and third-tier Chinese cities: Attractive investment opportunities can now be found outside the quartet of Beijing, Shanghai, Guangzhou and Shenzhen. This trend will continue as China's continued economic development relies more on domestic consumption and first tier cities reach maturity.

China's banks are extremely well placed to benefit from the opening up of more remote parts of China with detailed knowledge of the environment and an already brand loyal customer base.

Much has been said and written about the need for the appearance of Chinese companies on the global stage, and most of the discussion has been about consumer brands such as cars and clothes. However, it appears to be the Chinese banking sector that is leading the way with an extremely firm foundation and rapid global expansion.

Chinese brands, such as fashion brands, can learn a lot from their Western competitors but, quite demonstrably and unequivocally, Western banks have a lot to learn from their Chinese competitors.

The author is a researcher at Nottingham University's School of Contemporary Chinese Studies. The views do not necessarily reflect those of China Daily.