Number Of Banks In The U.S. – How Many Are There?

Have you ever wondered how many banks are there in the U.S.? The number of banks has been on a steady decline since the early 2000s and it’s fascinating to know exactly how many. In this article, we will explore the current state of banking in America, the changes that have taken place over the years, and what it means for consumers and businesses alike.

The banking industry is a major part of the economy, with more than 8,000 banks currently operating across the country. But it wasn’t always like this. Since its peak in 1984, when there were 18,000 federally insured banks nationwide, the number of banks has steadily declined due to consolidation and other factors. This has led to fewer options for customers who are looking for banking services.

However, despite this decrease in total numbers of banks, Americans still have numerous options when it comes to choosing a bank or financial institution. From big national banks to small local credit unions and online only institutions – there are plenty of ways to access your money and manage your finances safely and securely. So let’s take a look at what’s been happening with the number of banks in America over the past few decades and what it means for us today!

State Of The Banking Industry

The banking industry in the United States is highly regulated and monitored to ensure a safe, secure, and efficient financial system. In the US, there are currently 5,112 commercial banks and federally chartered savings institutions. These banks have over $17 trillion in assets, which makes up nearly 90 percent of the total banking market share in the country.

The five largest commercial banks in the United States are JPMorgan Chase & Co., Bank of America Corporation, Wells Fargo & Company, Citigroup Inc., and U.S. Bancorp. Together they hold nearly half of all deposits in the US banking system and make up just under 35 percent of total assets held by all commercial banks. Additionally, these five banks also account for more than 80 percent of all mortgages originated in the US.

The Federal Reserve plays an important role in regulating and supervising commercial banks across the country ensuring that they operate within established rules and regulations while providing consumers with access to fair lending services such as credit cards and loans.

Types Of Banks In The Us

The US banking industry is both complex and varied, with a wide array of different banks providing services to consumers. In this section, we will take a look at the various types of banks that exist in the US today.

Commercial banks are one of the most common types of banks in the US. These financial institutions offer an array of services such as checking and savings accounts, loans, investments, and more. Most commercial banks also have branches outside their home region, allowing them to offer services across multiple states or even countries.

Another type of bank found in the US is an investment bank. Investment banks specialize in providing advice and assistance related to securities trading, mergers and acquisitions, corporate finance, capital raising, and more. They also act as underwriters for new stock offerings and can provide market analysis on potential investments.

Lastly, there are credit unions which are not-for-profit organizations that provide similar services to other banks but are owned by their members instead of corporate shareholders. Credit unions usually focus on offering low interest rates on loans as well as higher interest rates on savings accounts than those offered by commercial banks. Credit unions tend to be popular with those who prefer a more personalized banking experience than what’s offered from larger financial institutions.

Consolidation Of Banks In The Us

The number of banks in the US has been steadily declining over the past decade. This is largely due to consolidation, where larger banks acquire smaller ones. In 2010, there were just under 8,000 FDIC-insured commercial banks operating in the US. By 2020, that number had dropped to approximately 5,400.

This trend of consolidation has continued over the last ten years as larger banks acquire smaller ones in order to expand their market share and increase profits. In addition, many small community banks have merged with one another or sold out to larger institutions in order to remain competitive. The result of this consolidation is fewer choices for customers and less competition for banking services.

The impact of consolidation on the banking industry can be seen in several areas. Consumers may find it difficult to get a loan from a local bank if it has been taken over by a larger institution or merged with another one. Additionally, fewer choices mean that consumers may have to pay higher fees and interest rates than they would have previously at a smaller bank. Ultimately, more concentration of banking assets means less competition and higher costs for customers.

Regulations Affecting Bank Numbers

Moving on from the consolidation of banks in the US, this section will discuss regulations affecting bank numbers. The regulations governing the banking industry are constantly evolving and changing, making it difficult to determine exactly how many banks there are in the US. There are federal laws that regulate banking activities such as the Bank Holding Company Act, which requires all banks to be registered with at least one federal agency. Additionally, state governments also have their own laws that affect how many banks can operate within their borders.

The number of approved applications for new bank charters has decreased significantly since the early 2000s due to stricter regulatory requirements imposed by both state and federal governments. For example, financial institutions must now meet higher capital requirements in order to be approved for a charter. This means that the size of a bank’s balance sheet is a major factor when determining whether or not they will be approved for a charter. Furthermore, potential applicants must also meet more stringent criteria regarding management experience, loan underwriting standards, and other operational criteria before being granted approval by regulators.

These increased regulatory requirements have had an effect on the total number of banks operating in the US today. In 2020 there were 4,527 FDIC-insured commercial banks operating in America compared to 8,697 back in 2000. While this decline may seem drastic it is important to keep in mind that consolidation has been beneficial for many customers as it provides them with more options and better service than what was previously available from smaller local banks. Ultimately, these regulations help ensure that only strong and trustworthy institutions remain open for business while providing consumers with access to quality services.

Impact Of Technology On Bank Numbers

The impact of technology on the number of banks in the U.S. is evident. According to a report from the Federal Deposit Insurance Corporation, there were 5,223 banks in the U.S. at the end of 2019, which is down from 6,636 in 2010 and 8,300 in 2000. This decrease can be attributed to several factors, but technology has been one of the most influential.

Advanced technology has allowed banks to offer more services online while reducing their overhead costs. Customers no longer need to visit a physical bank branch for basic transactions like deposits and withdrawals; they can now do these tasks with a few clicks on their phones or computers instead. Furthermore, many large banking institutions have merged with smaller ones in order to reduce costs and increase efficiency through shared resources and technological integration. The result is fewer banks operating overall, but larger ones that are able to provide an increased number of services for customers across greater geographical areas than before.

As technology continues to develop and evolve, it will undoubtedly have an even greater effect on the U.S.’s banking landscape over time; however, it is important to note that this could still be beneficial for customers who are looking for easier access to banking services regardless of location or time constraints. With continued innovation, we may see an even greater shift towards online banking solutions which could ultimately help make financial services more accessible and efficient for everyone involved.

Projections For Future Bank Numbers

Moving forward, analysts are predicting a decrease in the number of banks in the U.S. over the next few years. This is mainly due to an increase in consolidation and mergers as financial institutions strive to compete on a larger scale. The trend shows that although more than 5,000 banks currently exist in the nation, this number is expected to drop to around 4,500 by 2022.

The primary cause of this anticipated decline is technology-based competition from non-traditional players such as tech giants and FinTech startups. These entities have begun to offer banking services that were previously provided exclusively by brick-and-mortar banks, including digital payments, loans, investments and more. With their superior technological capabilities and reach, these firms are able to provide better services at lower costs compared to traditional banks.

In response, traditional banks must now adapt or risk becoming obsolete. To stay competitive they must invest in new technologies and reinvent their business models accordingly. This could lead to partnerships between traditional financial institutions and newer participants in the market or further mergers and acquisitions between existing banks. Regardless of the outcome, it appears that changes are inevitable for the banking industry as it strives to keep up with advances in technology and consumer demands.


In conclusion, the banking industry in the US has been highly regulated and is constantly changing due to technology. The number of banks in the US varies depending on the type and consolidation of banks, as well as regulatory changes. Currently, there are more than 5,000 FDIC-insured institutions in the US and around 1,500 active commercial banks.

As technology continues to evolve, we can expect to see a decrease in the number of brick-and-mortar locations but an increase in online banking services. Banks will need to adapt their business models and strategies accordingly in order to stay competitive. This could mean more consolidation within the industry and fewer banks overall.

We cannot predict exactly how many banks there will be in the future, but it is clear that technological advancements will play a major role. It is important for consumers to stay informed about changes within the banking industry so that they can make educated decisions about their financial needs.

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