Big Four 'safest banks in the world'

Mozo

Friday 26 June 2009

Commonwealth Bank, National Australia Bank, ANZ and Westpac are among only eight financial institutions in the world to achieve AA financial stability ratings.

The Australian has explained that the number of institutions achieving this premium rating has withered since the onset of the economic crisis, with Australia’s Big Four often touted as shining lights in the global financial industry.

And since the start of the global downturn, the Big Four have seen their stability and strength grow considerably while many regional Aussie banks struggle to stay afloat.

Between them, the Big Four hold 69.8 per cent of all household savings in vehicles such as term deposits and savings accounts, while they are also responsible for 69.6 per cent of all home loan lending handed out in the country.

"We believe that the major banks will strengthen their positions as a result of the global financial crisis. There is evidence of this already when you look at market share they have gained since the crisis began," said Goldman Sachs JBWere’s banking analyst Ben Koo, speaking to the paper.

Despite their strength, Myrate.com.au has this week warned that consumers could find themselves stuck with an uncompetitive deal by sticking with the Big Four.

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