First of all, a B737 will never make a 4 minute hold unless you're flying very, very slowly.
This is because, unlike a light aircraft, we can't achieve a rate 1 turn while limited to 25° bank.
This is correct. The regs in our part of the world cover it by stating 'a rate 1 turn up to a maximum 25 degree angle of bank'. I would imagine all regs say something similar.
We were in the hold a few days ago at FL200, 220 kts indicated & the inbound turn was taking 2 minutes & 5 seconds. The outbound turn was just under 2 mins. The difference is because the FMC draws a perfect racetrack pattern. It does the downwind turn at 25 degrees AOB, draws parallel inbound & outbound legs & adjusts the other, in to wind turn, AOB to suit.
I have never had ATC complain, because they shouldn't. In fact, I have had some ATC comment on how nice the patterns look on their screens.
