Bank concentration asks a structural question: how much of a country’s commercial-banking assets are controlled by its largest banks? World Bank Global Financial Development indicator GFDD.OI.01 measures the assets of the three largest commercial banks as a share of total commercial-bank assets. A value of 80% means the top three banks account for about four-fifths of the measured banking assets. The source extract contains 172 latest non-missing observations spanning 2002–2021, so the main map and rankings use only the 134 observations actually dated 2021.
The 2021 median is 68.15% and the simple country-level mean is 68.05%. The middle half of observations lies between 55.62% and 81.81%. Malawi, Liberia, Lesotho, Iceland, Fiji, and Barbados are reported at 100%, while Nepal is 17.87%, Bangladesh 26.78%, and Iraq 29.27%. High concentration, however, is not automatically evidence of a weak banking system, and low concentration is not automatically proof of strong competition.
Table of Contents
Bank concentration measures the asset share of the three largest commercial banks
The World Bank defines GFDD.OI.01 as the assets of the three largest commercial banks divided by total commercial-banking assets. The asset definition includes earning assets, cash and amounts due from banks, foreclosed real estate, fixed assets, goodwill and other intangibles, tax assets, discontinued operations, and other assets. The underlying bank-level source is Bankscope for 2000–2014 and Orbis for 2015–2021, both from Bureau van Dijk.
A 100% observation is therefore possible. It can occur when essentially all measured commercial-bank assets in the source are held by the three largest institutions. It does not necessarily mean a country literally has only three banks. The series depends on the commercial banks represented in the underlying bank-by-bank database.
A higher ratio is not automatically worse, and a lower ratio is not automatically better
Concentration describes structure, not banking quality. A high value can reflect a small financial system dominated by a few institutions, historical consolidation, or a banking model in which a handful of nationwide banks hold most assets. A lower value indicates that the top three banks account for a smaller share and other banks collectively hold more assets.
Competition and financial stability require additional evidence. Nonperforming loans, capital adequacy, interest margins, fees, market entry, cost efficiency, profitability, digital access, and ownership can all matter. The map is best used to answer the narrower question of where commercial-bank assets are highly concentrated.
The 172 latest observations cannot be treated as one current ranking
The latest-value file contains 134 observations from 2021, 15 from 2020, and 10 from 2019, with the remaining values extending back as far as 2002. Mixing them into a single current league table would combine almost two decades of banking-sector change. This article therefore restricts the headline comparison to 2021.
| Latest observation year | Countries/areas |
|---|---|
| 2021 | 134 |
| 2020 | 15 |
| 2019 | 10 |
| 2018 | 2 |
| 2016 | 3 |
| 2015 | 1 |
| 2013 | 1 |
| 2012 | 1 |
| 2011 | 2 |
| 2007 | 1 |
| 2006 | 1 |
| 2002 | 1 |
Older latest observations remain useful for historical reference, but they are not pulled forward and labeled as 2021. A blank country on the synchronized map can simply lack a 2021 observation in this series; it should not be read as 0% concentration.
The 2021 median is 68.15%, with the middle half between 55.62% and 81.81%
Across the 134 synchronized observations, the mean and median are both close to 68%. The first quartile is 55.62% and the third quartile is 81.81%. That means the top three banks hold more than half of measured commercial-bank assets in a large majority of the 2021 observations.
| 2021 bank concentration | Countries/areas |
|---|---|
| Below 40% | 7 |
| 40% to <60% | 34 |
| 60% to <80% | 56 |
| 80% to <95% | 25 |
| 95% to 100% | 12 |
Only 7 observations are below 40%, while 56 fall between 60% and 80%, the largest band. Another 12 are at 95% or higher. These counts summarize market structure, not the number of banks or a measure of consumer choice.
Six observations are 100%, and several others are above 95%
Malawi, Liberia, Lesotho, Iceland, Fiji, and Barbados are reported at 100% in 2021. Lebanon is 99.69%, Namibia 98.79%, Lithuania 98.73%, North Macedonia 97.39%, Bermuda 96.63%, and Qatar 96.58%. Bhutan, Finland, and Trinidad and Tobago are also above 92%.
| Country/area | Bank concentration |
|---|---|
| Malawi | 100.00% |
| Liberia | 100.00% |
| Lesotho | 100.00% |
| Iceland | 100.00% |
| Fiji | 100.00% |
| Barbados | 100.00% |
| Lebanon | 99.69% |
| Namibia | 98.79% |
| Lithuania | 98.73% |
| North Macedonia | 97.39% |
| Bermuda | 96.63% |
| Qatar | 96.58% |
| Bhutan | 92.86% |
| Finland | 92.57% |
| Trinidad and Tobago | 92.56% |
Values near 100% should not be simplified into a claim that only three banks exist. The World Bank series is derived from bank-level Bankscope and Orbis records, and coverage can vary by country. The correct interpretation is that the three largest banks account for nearly all of the commercial-bank assets captured by the indicator.
The United States and China are near 38%, while Korea is 56.3%
Among selected large economies, the United States records 38.40% and China 38.32% in 2021. Japan is 46.33%, Korea 56.31%, Canada 60.75%, France 66.26%, Australia 69.13%, Brazil 70.39%, Saudi Arabia 73.12%, Germany 79.43%, South Africa 79.45%, and Singapore 80.81%.
| Country | 2021 bank concentration |
|---|---|
| Singapore | 80.81% |
| South Africa | 79.45% |
| Germany | 79.43% |
| Saudi Arabia | 73.12% |
| Brazil | 70.39% |
| Australia | 69.13% |
| France | 66.26% |
| Switzerland | 65.63% |
| Canada | 60.75% |
| Korea, Rep. | 56.31% |
| Mexico | 49.54% |
| Turkiye | 46.77% |
| Japan | 46.33% |
| Indonesia | 43.30% |
| United Kingdom | 42.91% |
| India | 40.90% |
| United States | 38.40% |
| China | 38.32% |
Those differences do not support a simple statement that one banking system is more competitive or safer than another. Licensing rules, the importance of foreign banks, public ownership, merger history, economic scale, and the role of securities markets can all affect the structure. Concentration is a starting point for comparison, not a complete competition index.
The lowest 2021 observations include Nepal, Bangladesh, and Iraq
Nepal has the lowest synchronized observation at 17.87%, followed by Bangladesh at 26.78% and Iraq at 29.27%. Ghana is 32.84%, Viet Nam 37.85%, China 38.32%, the United States 38.40%, Pakistan 40.63%, and India 40.90%. Lower concentration means banks outside the three largest institutions collectively hold a larger asset share.
It does not automatically establish strong price competition, lower borrowing costs, or better service. A banking market can have many institutions but still face ownership links, regional segmentation, regulatory barriers, or other features that affect practical competition.
Bank cost efficiency, revenue mix, and deposit depth are different questions
Green Map’s bank cost-to-income page measures operating expenses relative to operating income. The noninterest-income page measures how much of bank income comes from fees, trading, and other noninterest activities. The deposits-to-GDP page measures the size of bank deposits relative to the national economy. GFDD.OI.01 instead measures how concentrated commercial-bank assets are among the three largest banks.
A country can therefore have high concentration and low cost-to-income, or low concentration and a large noninterest-income share. These indicators should not be combined into a single ‘banking quality’ score without a much broader methodology.
Data source and mapping method
The statistical source is World Bank Global Financial Development series GFDD.OI.01 – Bank concentration (%). The World Bank defines the measure as the assets of the three largest commercial banks divided by total commercial-banking assets. Bankscope is the source for 2000–2014 and Orbis for 2015–2021, using Bureau van Dijk bank-level unconsolidated data.
All headline statistics, rankings, and map classes on this page are recalculated from the 134 observations dated 2021. ISO-3 codes match 123 observations directly to the Natural Earth low-resolution boundary layer. Small islands and separately reported areas can have valid statistical observations without a distinct visible polygon at this scale.
Frequently Asked Questions
What does an 80% bank concentration ratio mean?
Under World Bank GFDD.OI.01, it means the three largest commercial banks account for about 80% of the commercial-bank assets measured for that country.
What is Korea’s bank concentration ratio in 2021?
Korea records about 56.31% in the synchronized 2021 dataset, meaning the three largest commercial banks hold a little more than half of measured commercial-bank assets.
Does high bank concentration automatically mean weak competition?
No. Concentration describes market structure. Interest rates, fees, entry barriers, ownership, regional competition, and other evidence are needed to evaluate practical competition.
Why compare 134 observations instead of all 172 latest values?
The 172 latest observations span 2002–2021. Restricting the map and headline ranking to the 134 values actually dated 2021 avoids mixing different banking eras into one comparison.
Related Articles
The articles below separate banking-system concentration from cost efficiency, revenue composition, and deposit depth.
- How Much of Bank Operating Income Goes to Costs? 2021
- Bank Noninterest Income Share Map: Latest Values by Country
- Bank Deposits to GDP World Map | 2021 Country Comparison
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