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Bank Tiers

Bank tiers categorize banks and financial institutions based on their size (in terms of total assets) relative to the entire banking market. Because banks can have different growth opportunities depending on the countries and regions they serve, it can be useful to assign bank tiers relative to a bank’s location. Gartner, for example, categorizes banks into tiers based on which of 11 regions the bank is located in (four “mature markets” and seven “emerging markets”) to facilitate a fairer comparison between banks facing varying economic and business conditions.

What Small and Midsize Businesses Need to Know About Bank Tiers

For small and midsize banks, the bank tiering system can help managers identify their most immediate competitors. A well-defined tiering system also helps banks understand what it takes to expand and move up to the next tier.

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