Banking: Mitsubishi UFJ Financial Group becomes world's largest bank

The Mitsubishi UFJ Financial Group has become the world's biggest bank, knocking U.S.-based Citigroup off the top position.

Mitsubishi Tokyo Financial Group Inc, Japan's second largest financial institution bought the countries fourth largest, UFJ Holdings Inc. in a stock swap valued at 3.4 trillion yen (US$30.1 billion).

Commercial banking operations will merge Jan. 1 after a delay caused by linking their computer systems. Tokyo based Mitsubishi UFJ has total assets of around 190 trillion yen (US$1.68 trillion),just beating Citigroup Inc.'s US$1.55 trillion.