The current count of banks in the US

As of 2024, there are roughly 4,500 to 4,700 banks operating in the United States, depending on how you count them. The exact number shifts month to month because banks merge, fail, or open regularly. The Federal Deposit Insurance Corporation (FDIC), which insures deposits at most traditional banks, tracks this number and updates it quarterly.

That 4,500 figure includes commercial banks, savings banks, and savings and loan associations — the institutions most people think of when they say "bank." It does not include credit unions, which are member-owned cooperatives and operate under different rules. Credit unions number around 4,800 separately, so if you count both, the total financial institutions offering deposit accounts is closer to 9,000.

The number has been falling for decades. In 1985, there were roughly 14,000 banks in the US. The decline happened through consolidation — larger banks bought smaller ones — and through failures during economic downturns. The 2008 financial crisis accelerated this trend significantly.

Key Takeaways

  • The FDIC reports approximately 4,500 to 4,700 banks in the United States as of 2024, and this number changes as banks merge or close.
  • The count includes commercial banks, savings banks, and savings and loan associations, but excludes credit unions, which operate as separate member-owned institutions.
  • The number of banks has declined from roughly 14,000 in 1985 due to mergers and consolidations, particularly after the 2008 financial crisis.
  • The largest banks by assets control a significant share of total deposits, while thousands of smaller regional and community banks serve local markets.
  • You can find the current official count and details about specific banks through the FDIC's Bank Find tool on their website.

Why the number keeps changing

Banks disappear from the count through three main routes: mergers, failures, and voluntary closures. When Bank A buys Bank B, the total count drops by one even though customers may not notice much change. When a bank fails — meaning it runs out of money and cannot pay depositors — regulators shut it down and the FDIC either arranges a sale to another bank or pays out insured deposits directly. Voluntary closures happen when a bank decides to exit the market, usually because it cannot compete or the owner wants to retire.

New banks open less frequently than old ones close, which is why the overall trend is downward. Starting a bank requires significant capital, regulatory approval from both state and federal authorities, and a business plan that convinces regulators you can operate safely. The barriers are high enough that most new financial services come from fintech companies or online-only banks that operate under existing charters rather than creating new ones.

The difference between big banks and small ones

The 4,500 banks are not evenly distributed by size. The top 10 banks by assets hold roughly 50% of all deposits in the US banking system. These are names you know: JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and others. They operate thousands of branches nationwide and handle most large business lending.

The remaining 4,490 banks are mostly regional or community banks. A regional bank might operate in five to ten states. A community bank typically serves a single city or county. These smaller institutions often specialize in local lending — mortgages, small business loans, agricultural credit — where they have relationships and local knowledge that national banks do not prioritize. Many people bank at these institutions without realizing they are not part of a national chain.

How the FDIC counts and tracks banks

The FDIC maintains the official count through its Bank Find tool, a searchable database of every insured institution. When you search for a bank by name or location, you are looking at the FDIC's own records. The agency updates this database as changes happen, so the count you see today may differ from last month.

The FDIC counts an institution as a bank if it holds deposits and is insured by the FDIC. This includes national banks (chartered by the federal government), state-chartered banks (chartered by individual states), and savings institutions. The count excludes credit unions because they are insured by a different agency, the National Credit Union Administration (NCUA), and operate under different rules.

What happened to all the banks that used to exist

The decline from 14,000 banks in 1985 to 4,500 today reflects a fundamental shift in American banking. Deregulation in the 1980s and 1990s removed restrictions on interstate banking, which meant large banks could expand across state lines for the first time. This triggered a wave of consolidation as national banks absorbed regional competitors.

The savings and loan crisis of the late 1980s and early 1990s wiped out hundreds of institutions. The 2008 financial crisis caused another wave of failures and forced mergers. Between 2008 and 2012, the FDIC closed or arranged the sale of 465 banks. Smaller institutions that survived often merged with larger ones to gain stability and scale.

Technology also played a role. As online banking became standard, the advantage of having a physical branch in every neighborhood disappeared. Customers could bank from home, which meant smaller banks with limited branch networks became less competitive against national players with digital platforms.

Where to find current information about specific banks

If you want to know whether a specific bank is FDIC-insured or find details about a bank you are considering, use the FDIC Bank Find tool at fdic.gov. Search by bank name, location, or certificate number. The tool shows you the bank's charter type, when it was established, its main office location, and whether it is currently insured.

For credit unions, the equivalent resource is the NCUA's Credit Union Locator at ncua.gov. If you are comparing institutions, knowing whether they are FDIC or NCUA insured matters because it affects what protections cover your deposits in case of failure.

Frequently Asked Questions

Does the number of banks affect where I can bank?

Not directly. Even though there are fewer banks than in 1985, most people have more banking options now because of online banks and credit unions. You can open an account at institutions that have no physical branch near you. The consolidation has reduced local competition in some areas, which can mean fewer choices for in-person services, but digital options have expanded overall.

Is my money safe if my bank is one of the smaller ones?

Yes, as long as it is FDIC-insured. The FDIC insures deposits up to $250,000 per account holder per bank, regardless of the bank's size. A small community bank with FDIC insurance offers the same deposit protection as JPMorgan Chase. You can verify a bank's insurance status through the FDIC Bank Find tool.

Why do banks keep merging?

Mergers happen because larger banks can spread costs across more customers, invest more in technology, and compete more effectively against national players. Smaller banks often cannot afford to build the digital infrastructure or comply with regulations as cost-effectively as large ones. Mergers also happen when a bank is struggling and regulators arrange a sale to a healthier institution rather than let it fail.

Are there more banks now than there were during the pandemic?

No. The number continued to decline through 2020 to 2024. The pandemic accelerated the shift to digital banking, which reduced the competitive advantage of having many physical branches. Some regional banks closed branches during this period, and consolidation continued.

Can I find out how many banks operate in my state?

Yes. The FDIC Bank Find tool lets you search by state, and you can see every insured bank with a main office or branch in that state. Your state banking regulator also publishes this information. The number varies widely — California and Texas have hundreds of banks, while smaller states may have dozens.