Recently, we found a claim alleges that BlackRock, one of the world’s largest asset management firms, “owns all Australian banks.” This claim has led many people to distrust big financial institutions and has strengthened conspiracy theories about powerful corporations controlling entire national economies. However, our fact-checking reveals that this claim is false.
Social Media Posts
This statement has circulated on multiple online platforms suggesting that BlackRock control the entire Australian banking sector.
Fact Check
BlackRock Holds Minority Shareholdings
BlackRock holds small minority stakes in Australia’s “Big Four” banks: Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ. The exact shareholding percentages (as of recent disclosures) are as follows:
- Commonwealth Bank: ~6.36%
- Westpac: ~6.50%
- National Australia Bank: ~5.81%
- ANZ: ~5.29%
These percentages reflect minimal shareholding positions. According to Australian regulatory frameworks, such limited stake does not constitute operational control or true ownership. These minority shareholdings only permit BlackRock to participate in shareholder votes without granting authority to control operational decisions or strategic direction.
Source: (InvestorDaily, PennyButler.com)
No Controlling Stake Under Australian Corporate Law
According to Australia’s Corporations Act of 2001 and regulatory guidelines from the Australian Prudential Regulation Authority (APRA), “control” of a company is clearly defined in legal terms. This definition is important because it establishes the threshold at which an investor moves from being simply a shareholder to having actual control over a company’s operations:
- Holding 20% or more of voting shares, which gives sufficient voting power to significantly influence major company decisions, or
- Having the power to control board appointments, determine the composition of leadership, or direct the strategic decision-making process of the company.
An examination of BlackRock’s shareholdings reveals that the firm holds far below the 20% legal control threshold in all four major Australian banks. With stakes ranging from approximately 5.3% to 6.5%, BlackRock cannot exercise the level of influence that would constitute control under Australian law. This conclusively rules out the possibility that BlackRock controls bank operations, executive appointments, or policy direction in any meaningful legal sense. (Source)
Ability to Influence, But Not Control
It is important to understand that while BlackRock does not control Australian banks, it does have a meaningful voice in corporate matters. As a significant institutional investor, BlackRock can influence corporate governance through its shareholder voting rights. This means BlackRock participates in the decision-making process during annual general meetings and special shareholder votes. The firm can cast votes on various important corporate matters, including:
- Executive compensation packages and performance metrics
- Environmental, social, and governance (ESG) policies and sustainability reporting requirements
- Capital management decisions such as equity issuance, share buybacks, and dividend policies
- Appointments to the board of directors and overall board composition
- Merger and acquisition proposals that require shareholder approval
However, it’s crucial to recognize the limitations of this influence. With ownership stakes of only approximately 6% in each of Australia’s major banks, BlackRock cannot independently determine the outcome of shareholder votes. (Source)
Conclusion
The claim that BlackRock owns all Australian banks is clearly false. BlackRock only holds small stakes (around 5-6%) in Australia’s major banks, which is far from ownership or control. While BlackRock can vote on some company decisions, its influence is limited by Australian law and balanced by thousands of other shareholders.
In simple terms, BlackRock is just one of many investors in Australian banks, not their owner or controller.
