Banking Analytics: Largest Banks’ Trading Assets Surge in Recent Quarters

KEY TAKEAWAYS

Trading assets at U.S.-based global systemically important banks (GSIBs) have surged, growing from $2.5 trillion at the end of 2024 to $3.7 trillion in the second quarter of 2026 — doubling since the end of 2019. They now represent approximately 20% of assets at GSIBs.
Trading revenue accounts for the bulk of revenue from capital markets activity at these large banks, with $117 billion collected in 2025. Trading revenue has been increasing for several years after falling to $62 billion in 2022.
Regulatory changes in November 2025 impacted this growth, as federal banking regulators modified enhanced supplementary leverage ratio standards, reducing capital requirements for GSIBs and allowing them to expand their balance sheets and trading activities.

While loans and investment securities make up the bulk of assets at most of the nation’s banks, another category of assets — trading assets — makes up a significant portion of assets at the largest and most complex U.S. institutions, the so-called global systemically important banks, or GSIBs.The U.S.-based GSIBs are: Bank of America Corp., The Bank of New York Mellon Corp., Citigroup Inc., The Goldman Sachs Group Inc., JP Morgan Chase & Co., Morgan Stanley, State Street Corp. and Wells Fargo & Co. Trading assets on the books of the nation’s largest banks neared $3.7 trillion in the second quarter of 2026, up from $2.5 trillion at the end of 2024 and doubling since the end of 2019. Trading assets have surged at U.S. GSIBs in recent quarters and now account for about 20% of the assets on their books.For an analysis of lending activity by U.S. GSIBs, see this Sept. 22, 2026, On the Economy blog post.

Trading revenue accounts for the bulk of revenue from capital markets activity at these large banks, with $117 billion collected in 2025. Trading revenue has been increasing for several years after falling to $62 billion in 2022.

What Are Trading Assets?

Trading assets consist mostly of securities that are held by a bank for the purpose of reselling in the near future to profit from short-term price movements.Securities held for investment purposes are held in a different portfolio. Trading activities include regular underwriting and dealing of assets; acquisition of assets for the purpose of new term selling at a profit; and acquisition and position taking of such assets to accommodate customers. Trading assets can include U.S. Treasury, mortgage-backed and other securities; foreign exchange rate and interest rate contracts; equities; loans; derivatives; and other assets. They are reported at fair, or market, value on banks’ balance sheets, and unrealized gains or losses on these assets are recorded on banks’ income statements.

The size of trading books is tied to the overall size of debt and equity markets, which directly influences the amount of tradable assets. In fact, the total market value of the U.S. stock market reached $75.3 trillion as of July 1, 2026, and U.S. fixed income outstanding reached $51.4 trillion in the second quarter of 2026.The stock market capitalization source is Siblis Research; the fixed-income source is the Securities Industry and Financial Markets Association. Both markets have grown rapidly in recent years.

Additionally, in November 2025, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency adopted a final rule to modify the enhanced supplementary leverage ratio (eSLR) standards, which ultimately reduced eSLR capital requirements for U.S.-based GSIB holding companies and their subsidiary depository institutions. This allowed GSIB firms to increase the potential size of their balance sheets, including additional capacity to engage in trading activities.

Notes

The U.S.-based GSIBs are: Bank of America Corp., The Bank of New York Mellon Corp., Citigroup Inc., The Goldman Sachs Group Inc., JP Morgan Chase & Co., Morgan Stanley, State Street Corp. and Wells Fargo & Co.
For an analysis of lending activity by U.S. GSIBs, see this Sept. 22, 2026, On the Economy blog post.
Securities held for investment purposes are held in a different portfolio.
The stock market capitalization source is Siblis Research; the fixed-income source is the Securities Industry and Financial Markets Association.