Big Four (banking)

Big Four is the colloquial name for the four main banks in several countries, where the banking industry is dominated by just four institutions and where the phrase has gained currency.

Australia

In Australia, the "Big Four" refers to the four largest banks ^[1] by market share, who between them hold 85% of the home loan markets ^[2] in the country. These are:

• National Australia Bank
• Commonwealth Bank (government owned until 1996)
• Westpac
• Australia and New Zealand Banking Group

The government policy till 2011 was to maintain this status quo, it was called the four pillars policy. But since the acquisition of St George Bank by Westpac and BankWest by CBA during the Global Recession of 2008-9, the Federal Government is trying to set up a 5th pillar of banking with Credit Unions.

China

During the 1920s the term “Big Four” applied to the Four Northern Banks of the Republic of China (i.e. the four most capitalized commercial banks in Northern China).^[3] These were the Yien Yieh Commercial Bank, the Kincheng Banking Corporation, the Continental Bank and the China & South Sea Bank. These were contrasted with the Three Southern Banks of Southern China.

By 1949 the Big Four were the Bank of China, the Bank of Communications, the Central Bank of China and the Farmers Bank of China.

Currently, in the People's Republic of China, the Big Four banks ("四大商业银行") are:

• Bank of China
• China Construction Bank
• Industrial and Commercial Bank of China
• Agricultural Bank of China

and have been described as such in the western press.^[4]

India

In India, the four largest competitors consist of 2 state owned commercial banks and 2 private sector banks.

• State Bank of India
• ICICI Bank
• Punjab National Bank
• HDFC Bank

Ireland

The four largest banks in Ireland all operate in both the Republic of Ireland and Northern Ireland.

• Bank of Ireland
• Ulster Bank
• Allied Irish Banks - operates as First Trust Bank in Northern Ireland
• National Irish Bank - Northern Bank in Northern Ireland

South Africa

In South Africa, the big four are, according to this site:

• FirstRand Bank (operators of First National Bank)
• Absa Group (owned by Barclays)
• Standard Bank
• Nedbank (owned by Old Mutual)

United Kingdom

In relation to the United Kingdom, the phrase "Big Four banks" is currently used to refer to the four largest UK-based banking groups, being:

• Barclays PLC;
• HSBC Holdings plc;
• Lloyds Banking Group plc; and
• The Royal Bank of Scotland Group plc.^[5][6]

During most of the 20th century, the phrase "Big Four banks" referred to the four largest UK clearing banks (institutions which act as clearing houses for bankers cheques), which were:

• Barclays Bank (part of Barclays PLC);
• Midland Bank (now HSBC Bank plc and part of HSBC Holdings plc);
• Lloyds Bank (now Lloyds TSB Bank Plc, itself now part of Lloyds Banking Group plc); and
• National Westminster Bank ("NatWest") (now part of The Royal Bank of Scotland Group plc).^[7]

United States

In the United States, the "big four" banks hold 39% of all U.S. customer deposits (as of 2009), and consist of:^{[8][9][10][11][12][13][14]}

• Bank of America
• Citigroup, through its Citibank subsidiary
• JPMorgan Chase, through its Chase subsidiary
• Wells Fargo

By a retail banking perspective, U.S. Bancorp and PNC Financial Services both have more branches than Citibank, the retail banking arm of Citigroup. However, Citibank still has significantly more assets than U.S. Bancorp and PNC.^[15]

See also

• Big Five (banks), Canada

References