Top Banks in Australia 2022

The banking system in Australia is very reliable and is of a transparent nature. The banking sector of Australia is sophisticated and competitive and it has a strong regulatory system. The banks in Australia have a major role in the country’s financial system. They not only offer traditional services but they also offer services like business bankingBusiness banking refers to a bank or financial institution that focuses solely on businesses and corporate clients, offering products such as business loans, asset management, and electronic fund transfers that are tailored to their specific needs.read more, trading in the financial markets, stockbroking, and funds management. As per reports of Moody, the Australian Banking system is in a stable condition because of strong home prices, rising household debt, and moderate growth in wages.

There are six major forces which are shaping the Australian banking system. They change in demographics, technology, consumer behavior, Asian financial condition, government, and a subdued global economy. These forces play a pivotal role wherein the traditional value drivers like asset growth and leverage are dissipating and there are chances of these getting reversed. This leads to a revision of return expectations and future expectations for the industry. The banking system in Australia differs from that of America. In Australia, the demarcation line between retail banks and the investment banks have blurred down to a great extent.

Structure of Banks in Australia

Top Banks in Australia 2022 2

The Australian Banking zone is evolving with time and is presently present manner cutting-edge deregulation and privatization. Now foreign places banks are allowed through the usage of the authorities to go into the economic marketplace. The retail banks in Australia inside the cutting-edge scenario provide a number of monetary services like existence and fashionable coverage, stock brokering, and safety underwritingThe underwriters take the economic threat of their purchaser in go back of a monetary rate. Market Makers like financial organization and big banks ensure that there’s enough amount of liquidity within the market through making sure that enough trading quantity is there.Read extra to the retail clients.

They additionally provide enterprise and purchaser loansA consumer loan is a form of credit score score given to a client to finance certain set of prices. The borrower need to pledge a selected asset as collateral for the mortgage, or it is able to be unsecured relying at the loan’s economic charge.Examine greater to help both individuals and organizations to flourish. Since the retail banks provide a basket of financial services it straight away locations them in of completion with the brokerage corporations and the service provider banks. Non – Australian foreign places banks are allowed by way of using the government to open and characteristic as branches in order to cater to the wholesale marketplace. But in this example, retail banking is only allowed via a locally included subsidiary.

At the head is the Reserve Bank of Australia (RBA) which comes to a decision the monetary policy and regulates the charge gadget.  Then there is the Australian Prudential Regulation Authority (APRA) whose main characteristic is to hold a tab on the banks, credit score unions, constructing societies, coverage organizations inclusive of widespread, life and private health insurance, and the members of the superannuation enterprise. The Australian Prudential Regulation Authority maintains a watch at the institution whose holdings are almost USD3.7 Trillion in belongings which cover nearly 24 million Australian depositors, policyholders, and participants of superannuation fund.

In Australia, banks require a bank license as per the Banking Act. Foreign banks also require a license as they are only allowed to operate through a branch in Australia and also via Australian incorporated foreign bank subsidiaries. banks in Australia can be classified into four major categories. They are:

  • Nationally operating banks commonly referred to as the major banks
  • State banks
  • Regionally operating banks
  • Foreign Banks.

The major banks or the nationally operating banks have extensive branches and agency networks because they operate throughout Australia. The State Banks have their operations within each state and the regionally operating banks are those building societies that have been converted into banks and they cater to a niche market. The structure of the Australian Banking system is oligopolistic in nature. The Australian market is dominated by four major banks thus lessening completion and making the market oligopolistic.

List of Top 10 Best Banks in Australia

  1. Commonwealth Bank of Australia
  2. ANZ
  3. NAB
  4. Westpac
  5. Bank of Queensland
  6. Macquarie Bank
  7. Bendigo Bank
  8. AMP Bank Ltd
  9. Suncorp Bank
  10. Bankwest

In Australia, there are 53 Australian banks out of which only 14 are owned by the government. Though there are several small banks present the Australian Banking sector is dominated by four major banks- Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB). All these banks have AA- ratings.

Commonwealth Bank of Australia

This is a multinational bank. It has its presence in New Zealand, Fiji Islands, Asia, the US, and the UK. This bank was formed in the year 1911 and has headquartered in Sydney. This bank has more than 11,000 branches and the number of employees is approximately 52,000. It is the biggest bank in Australia and it provides a varied range of services and a basket of financial products. It offers services in retail, business, and institutional banking and also wealth management.

ANZ

This bank was formed in 1835 and is one of the best Banks in Australia. It has its operation in the US, Europe, Australia, New Zealand, the Asia-Pacific region and the Middle East. The bank provides financial services to retail, HNI clients, SMEs, corporate and commercial customers. It has its headquarters in Melbourne and has nearly 46,000 staff.

NAB

This bank was formed as a result of the merger between the National Bank of Australasia and the Commercial Banking Company of Sydney. With headquarters in Docklands, it is present in New Zealand, US, Asia, and Europe.

Westpac

This was known as Bank of New South Wales and is the result of the mergerA merger is a voluntary fusion of two existing entities equal in size, operations, and customers deciding to amalgamate to form a new entity, expand its reach into new territories, lower operational costs, increase revenues, and earn greater control over market share.read more between BNSW and Commercial Bank of Australia. It offers services through its 5 divisions- Consumer Bank, Business Bank, BT Financial Group, Westpac Institutional Bank, and Westpac NZ.

Bank of Queensland

This bank has its headquarters in Queensland and it offers only retail banking services.

Macquarie Bank

With headquarters in Sydney, this bank offers services in asset managementAsset management is a method of managing funds and investing in both traditional and specialized products in order to generate returns consistent with the investor’s risk tolerance. read more, finance, banking, advisory and risk, and capital solutions.

Bendigo Bank

This was formed due to a merger between Bendigo Bank and Adelaide Bank. It is one of the largest retail banks in Australia.

AMP Bank Ltd

This bank is based out of Sydney and it offers retail banking services like deposits, residential mortgages, transaction banking servicesTransaction banking is a banking service with a significant role in corporate or banking institutions by enabling the safe flow of money from one country to another, mitigation of risks, cash flow management services, and offering security services for improving relationships between banking institutions, clients and partners.read more, etc. It is one of the leading wealth management firms in Australia and NZ. Its operation is spread over Asia, the Middle East, Europe, and North America.

Suncorp Bank

This bank specializes in providing services like general insurance, banking, life insurance, and wealth management services in Australia and NZ. The bank has its headquarters in Brisbane.

Bankwest

This bank started off as a rural lender but became a full-fledged trading bank in 1945. With headquarters in Perth, this bank also has offices in Adelaide, Brisbane, Canberra, Melbourne, and Sydney. It offers services in personal banking, business banking, commercial banking, agri-business finance, etc.

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