Big Four (banking)
The Big Four is the colloquial name given to the four main banks in several countries where the banking industry is dominated by just four institutions and where the phrase has thus gained currency.
International use
Internationally, the term "Big Four Banks" has traditionally referred to the following central banks:- The Federal Reserve
- The Bank of England
- The Bank of Japan
- The European Central Bank
Australia/New Zealand
A longstanding policy of the federal government in Australia has been to maintain this status quo, called the "four pillars policy". The policy has been maintained through the Global Recession of 2008–09, as Westpac acquired St.George Bank and the Commonwealth Bank acquired Bankwest, reinforcing the special status of the "big four".
Being New Zealand's closest neighbour, with very close ties culturally and economically, has helped Australia dominate the banking sector there. Often referred to collectively as the 'big banks' or the 'big Aussie banks', the "Big Four" Australian banks also dominate the New Zealand banking sector in the form of:
- Australia and New Zealand Banking Group, or ANZ, also comprising the former business of The National Bank.
- ASB Bank, formerly Auckland Savings Bank, wholly owned by the Commonwealth Bank
- The Bank of New Zealand, wholly owned by the National Australia Bank
- Westpac, formerly known as WestpacTrust after a merger with the Trust Bank.
These four subsidiaries are massively profitable and in some cases even outperform the Australian parent companies. The extent to which they dominate the banking sector can be seen in profits: In the 2012/2013 financial year, the largest of the Big Banks, ANZ New Zealand, made a profit of NZ$1.37 billion. The smallest, BNZ, made a profit of NZ$695 million. State-owned Kiwibank, community trust-owned TSB Bank, SBS Bank and Heartland Bank, the next four largest banks by profit, made NZ$97 million, NZ$73.5 million, NZ$14 million and NZ$7 million respectively. In other words, the profit of New Zealand's next four largest banks is equal to less than 30% of the smallest of the Big Four, BNZ.
Austria
The "Big Four" banks of Austria are:- Erste Bank / Sparkasse*
- UniCredit Bank Austria
- Raiffeisen Bankengruppe*
- Österreichische Postsparkasse
- separate legal entities operating under a common brand
Belgium
- KBC Bank, including its CBC Banque subsidiary in the French Community of Belgium and KBC Brussels brand in the Brussels-Capital Region
- Belfius, government owned bank
- BNP Paribas Fortis, subsidiary of BNP Paribas
- ING Bank, subsidiary of the ING Group
Brazil
Name | Description | Year | Net Assets |
Itaú Unibanco | Largest Private bank | 2017 | US$452.6 billion |
Banco do Brasil | Largest State Owned Bank | 2017 | US$430.2 billion |
Caixa Econômica Federal | State Owned Bank | 2017 | US$406.0 billion |
Banco Bradesco | Private Bank | 2017 | US$391.6 billion |
Canada
There are five banks dominating the Canadian banking sector, hence the "Big Five" is used instead of "Big Four".- Royal Bank of Canada
- Toronto-Dominion Bank
- Bank of Nova Scotia
- Bank of Montreal
- Canadian Imperial Bank of Commerce
China
By 1949, the "big four" banks were the Bank of China, the Bank of Communications, the Central Bank of China and the Farmers Bank of China. All four were state-owned. Together with Central Trust of China, Postal Savings and Remittance Bureau of China, and Central Cooperative Treasury of China, these banks were called the "four banks, two bureaus, one treasury" or "四行两局一库".
In the People's Republic of China, the Big Five Banks are:
- Industrial and Commercial Bank of China
- Bank of China
- China Construction Bank
- Agricultural Bank of China
- Bank of Communications
Colombia
In Colombia, the ten biggest banking service networks are:Name | Description | Year | Net Assets |
Banco de Bogotá | Largest Private Bank | 2017 | COP 3.6 trillions |
Bancolombia | Largest Private Bank | 2017 | COP 2.6 trillions |
Banco Davivienda | Largest Private Bank | 2017 | COP 1.204 trillions |
Banco de Occidente Credencial | Private Bank | 2017 | COP 932.827 billions |
BBVA Colombia | Private Bank | 2017 | COP 346.333 billions |
State owned Bank | 2017 | COP 339.410 billions | |
Banco Colpatria | Private Bank | 2017 | COP 253.572 billion |
Private Bank | 2017 | COP 238.116 billions | |
Citibank Colombia | Private Bank | 2017 | COP 172.051 billions |
Private Bank | 2017 | COP 156.033 billions |
Czech Republic
In Czech Republic, according to R. Pazderník, the "big four" are:- Česká spořitelna, subsidiary of Erste Group
- Československá obchodní banka, subsidiary of KBC Bank
- Komerční banka, subsidiary of Société Générale
- .
Germany
- Deutsche Bank
- DZ Bank
- KfW
- Commerzbank
India
- State Bank of India
- ICICI Bank
- HDFC Bank
- Punjab National Bank
Indonesia
- Bank Rakyat Indonesia
- Bank Mandiri
- Bank Central Asia
- Bank Negara Indonesia
Ireland
- Bank of Ireland
- Allied Irish Banks
- Ulster Bank - Subsidiary of The Royal Bank of Scotland Group since 2000/2001
Israel
In Japan, the term "big three" is used instead of "big four". The "big three" are:In Lebanon, where the banks have retained their banking secrecy laws since 1956, which is prevalent in the whole MENA region, and while adopting international measures to fight money laundering, the "big four" banks consist of:
- Audi Saradar Bank
- Byblos Bank
- BLOM Bank: Banque du Liban et d'Outre-Mer S.A.L
- Fransabank
Luxembourg
The "big four" full-service banks in Luxembourg are:- Banque et Caisse d'Épargne de l'État, state owned bank
- Banque Internationale à Luxembourg,
- BGL BNP Paribas
- ING Luxembourg
Mexico
The "big four" in Mexico are:The "big four" banks in the Netherlands by market concentration are:
- ING Group
- Rabobank
- ABN AMRO
- de Volksbank, state owned banking arm of SNS Reaal
Nigeria
The term "Big Five" is used instead of four, with five banks dominating the Nigerian banking world. In 2011, these top five banks had a combined balance sheet, including contingents, of 12.9 trillion naira, 33 percent higher than the prior year.The "top five" banks of Pakistan are:
- Habib Bank
- MCB Bank Limited
- National Bank of Pakistan
- United Bank
- Allied Bank
Peru
- Banco de Crédito del Perú
- BBVA Perú
- Scotiabank
- Interbank
Philippines
- Banco de Oro
- Metrobank
- Land Bank of the Philippines
- Bank of the Philippine Islands
Romania
- Banca Comercială Română, now part of the Erste Group
- Banca Transilvania, the biggest bank detained by private investors with domestic capital
- BRD – Groupe Société Générale, formerly known as Romanian Bank for Development
- CEC Bank, the state-owned bank, formerly known as Casa de Economii și Consemnațiuni
Singapore
In Singapore, the "big three" are:- DBS Bank, also comprising the POSB Bank.
- OCBC Bank
- United Overseas Bank
South Africa
- Absa Group Limited, majority owned by Barclays between 2005 and early 2018.
- FirstRand Bank
- Nedbank - minority-owned by Old Mutual.
- Standard Bank
- Capitec Bank
South Korea
As of March 2017, the "big four" in Spain are:
There were formerly a "big six" composed of three banks that are now part of BBVA and three now combined as Santander.
Sri Lanka
In Sri Lanka, the "big four" are, as of October 2018:In Sweden the "big four" are:
In Switzerland, the "big three" hold 45% of all customer deposits. They are:
In Taiwan, the five "systemic banks" are:
- CTBC Bank
- Cathay United Bank
- Taipei Fubon Bank
- Mega International Commercial Bank
- Taiwan Cooperative Bank
Thailand
Prior to the Siamese Revolution, the banking system was controlled by foreign powers, particularly the "big four" European banks.
- The Hongkong and Shanghai Bank in 1888
- The Chartered Bank of India, Australia and China in 1894
- Banque de l'Indochine in 1897
- Mercantile Bank of India in 1923
United Arab Emirates
- First Abu Dhabi Bank
- Emirates NBD
- Abu Dhabi Commercial Bank
- Dubai Islamic Bank
- Mashreq
United Kingdom
England and Wales
In relation to England and Wales, the phrase "big four banks" is currently used to refer to the four largest banking groups:- Barclays
- HSBC
- Lloyds Banking Group and
- NatWest Group
Scotland
- Royal Bank of Scotland
- Bank of Scotland
- Clydesdale Bank and
- TSB Bank.
Northern Ireland
- Bank of Ireland
- Ulster Bank
- Danske Bank
- Allied Irish Banks
Historical use
After the merger of Westminster Bank and National Provincial Bank to form NatWest in 1970, the term "big four" was used.
United States
In the United States, the "big four" banks hold 45% of all U.S. customer deposits, and consist of:- JPMorgan Chase
- Bank of America
- Wells Fargo
- Citigroup