The Australian share market has closed lower, with the big banks shedding more than three per cent.

At the close on Friday, the benchmark S&P/ASX200 index was 135.3 points, or 2.41 per cent, lower at 5,474.8, while the broader All Ordinaries index was down 127.8 points, or 2.28 per cent, at 5,472.3.

On the ASX 24, the September share price index futures contract was 119 points lower at 5,409, with 38,993 contracts traded.