The number of banks in the United States is around 4,600 to 4,700, though the exact count shifts month to month as institutions merge, fail, or open

The Federal Deposit Insurance Corporation (FDIC) tracks every bank that holds deposits and has federal insurance. As of the most recent count, there are roughly 4,600 banks operating under FDIC insurance. That number has been falling steadily for decades—there were over 14,000 banks in 1985. The decline reflects consolidation: larger banks buy smaller ones, branches close, and regional institutions merge into national chains.

The count matters because it tells you something real about the banking landscape: most Americans bank with one of a few dozen large institutions, even though thousands of smaller banks still exist. A bank counts as a separate entity only if it holds its own charter and takes its own deposits. A branch of Bank of America is not a separate bank; the bank itself is one entity with thousands of branches.

Key Takeaways

  • The FDIC insures deposits at roughly 4,600 banks, a number that has declined by two-thirds since 1985 because of mergers and consolidation.
  • The largest banks—JPMorgan Chase, Bank of America, Wells Fargo, Citigroup—hold the majority of deposits even though thousands of smaller banks operate independently.
  • A bank must hold its own charter and take deposits directly to count as a separate bank; branches do not count separately.
  • The number of banks changes continuously as institutions merge, fail, or receive new charters, so any count is a snapshot rather than a fixed figure.

Why the number keeps dropping

Bank consolidation accelerated after the 2008 financial crisis. The FDIC closed 25 banks in 2008 alone, and many others were forced into mergers to survive. Since then, the pace has slowed, but the trend continues: roughly 50 to 100 banks leave the system each year through failure or acquisition, while only a handful of new banks receive charters.

Regulatory burden plays a role. Smaller banks face the same compliance costs as large ones—anti-money-laundering checks, consumer protection rules, cybersecurity standards—but spread those costs across fewer customers. A bank with $500 million in deposits pays nearly as much to comply with federal rules as a bank with $5 billion. That math pushes smaller institutions toward merger or closure.

Technology also matters. Building a banking operation now requires investment in digital systems, mobile apps, and fraud detection that a small regional bank cannot always justify. Larger banks absorb these costs across millions of customers; smaller ones cannot.

The difference between national banks and state banks

Banks in the United States operate under one of two charters: a national charter from the Office of the Comptroller of the Currency (OCC), or a state charter from the banking regulator in that state. A national bank must follow federal rules; a state bank follows state rules, though it can also choose federal insurance and federal oversight.

The FDIC count includes both. Of the roughly 4,600 banks, about 1,200 hold national charters and 3,400 hold state charters. The distinction matters for regulation and for which agency examines the bank, but not for deposit insurance—both types can carry FDIC protection.

What counts as a bank versus other financial institutions

The FDIC count includes only institutions that take deposits and hold a banking charter. It does not include credit unions, which are member-owned and regulated separately by the National Credit Union Administration (NCUA). There are roughly 4,900 credit unions in the United States, so the total number of deposit-taking institutions is higher than the bank count alone.

It also does not include investment firms, insurance companies, or fintech lenders that do not hold deposits. A company like PayPal or Square Cash may move money, but it is not a bank under federal law because it does not take deposits in its own name. Some fintech companies partner with banks to hold customer money, but the bank itself is the chartered institution.

Where the FDIC gets its count

The FDIC publishes a list of insured institutions quarterly, available on its website. The list includes the bank name, its headquarters location, the date it was insured, and its total assets. You can search it by state or by bank name. This is the official count used by regulators and researchers.

The number in that list changes because banks merge (two become one), fail (the FDIC closes it), or receive new charters (a new bank opens). The FDIC also removes banks that voluntarily surrender their charter. None of these events happen on a single day, so the count at any moment is a snapshot of that moment.

How bank size is distributed

The banking system is heavily concentrated. The ten largest banks hold roughly 50 percent of all deposits. The top 25 banks hold about 70 percent. That means roughly 4,575 smaller banks share the remaining 30 percent of deposits.

Most of those smaller banks are regional institutions with assets between $100 million and $10 billion. Some are community banks with a single branch or a handful of branches in one state. A few hundred are very small—under $100 million in assets—and serve a specific town or industry.

Frequently Asked Questions

How many banks failed in the United States recently?

Bank failures have been rare in recent years. The FDIC closed zero banks in 2022 and 2023, and one in 2024. This contrasts sharply with 2008–2012, when dozens failed each year. The current low rate reflects stronger capital requirements and stress testing that regulators now require.

Is my money safe at a small bank?

If the bank carries FDIC insurance, your deposits up to $250,000 per account type are protected even if the bank fails. You can check whether a bank is FDIC-insured by searching the FDIC's list of insured institutions on its website. Size does not determine safety; insurance does.

Why do some states have more banks than others?

States with larger populations and more economic activity tend to have more banks, but state banking laws also matter. Some states have historically allowed more independent banks; others encouraged consolidation. Texas and California have the most banks, partly because they are large and partly because their regulations have historically been less restrictive.

Can I start a new bank?

You can explore for a bank charter through the OCC (for a national bank) or your state regulator (for a state bank). The process takes one to two years and requires significant capital, a detailed business plan, and proof of management experience. Very few applications succeed; most years, fewer than 50 new banks receive charters.

What happened to all the banks that existed in 1985?

Most merged into larger institutions. Some failed during the savings-and-loan crisis of the late 1980s and early 1990s, or during the 2008 financial crisis. Consolidation accelerated after each crisis as regulators encouraged weak banks to merge rather than fail, reducing the total number of independent institutions.