The number of banks in the United States keeps shrinking

As of 2024, there are roughly 4,700 to 4,800 banks operating in the United States, depending on how you count them. That number has fallen steadily for decades. In 1985, there were nearly 15,000 banks. The decline accelerated after 2008, when the financial crisis forced many smaller institutions to close or merge with larger ones.

The count includes commercial banks, savings banks, and savings and loan associations — the institutions that take deposits and make loans. It does not include credit unions, which operate under a different charter, or non-bank lenders like payday shops or online-only fintech companies. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) track these numbers, and they update them quarterly as mergers and closures happen.

Key Takeaways

  • The United States has approximately 4,700 to 4,800 banks as of 2024, a decline from 15,000 in 1985.
  • The FDIC and OCC maintain the official count and update it quarterly as banks merge or close.
  • Large banks control most deposits, but thousands of small regional and community banks still operate.
  • Credit unions are separate institutions and are not included in the bank count.
  • Mergers and failures have accelerated since 2008, driven by regulation, technology costs, and competition.

Why the number keeps falling

The decline is not random. After 2008, regulators imposed stricter capital requirements and stress tests on banks. Compliance became expensive, especially for small institutions. A community bank with $500 million in assets now needs a compliance officer, a risk manager, and systems to detect money laundering — costs that a bank with $50 billion in assets can spread across millions of customers.

Technology also pushed consolidation. Building a mobile app, maintaining cybersecurity, and competing with fintech companies requires investment that small banks struggle to justify. Many regional banks found it cheaper to sell to a larger competitor than to build those systems themselves. Between 2010 and 2023, the number of bank failures and mergers averaged roughly 100 to 150 per year, though the pace has slowed in recent years.

How the count is actually made

The FDIC counts insured banks — institutions that hold FDIC insurance and accept deposits from the public. The OCC counts national banks, which are chartered by the federal government. State banking regulators count state-chartered banks. When you see a number like "4,700 banks," it typically means FDIC-insured institutions, which is the broadest measure of traditional banking.

The count changes monthly. When two banks merge, the number drops by one. When a bank fails, the FDIC takes it over and either sells it to another bank or liquidates it. When a new bank opens — which is rare now — the count goes up. You can see the current count on the FDIC website under "Statistics at a Glance," updated quarterly.

The difference between big banks and small ones

The 4,700 number masks a huge concentration. The ten largest banks hold roughly 50% of all deposits in the United States. The top 100 banks hold roughly 85%. That means thousands of small banks compete for the remaining 15%, and many of them serve specific regions or communities.

A small community bank might have $200 million in assets and serve a single county. A regional bank might have $5 billion in assets and operate across five states. A megabank like JPMorgan Chase has $3.7 trillion in assets and operates globally. All three are counted as "banks," but they operate in completely different markets and face different pressures.

Credit unions are separate from the bank count

Credit unions are not banks, even though they look similar to customers. A credit union is a member-owned cooperative, not a for-profit corporation. As of 2024, there are roughly 4,800 credit unions in the United States, almost the same number as banks. But they operate under different rules, are insured by the National Credit Union Administration (NCUA) instead of the FDIC, and are not included in the "number of banks" figure.

Credit unions have grown while banks have shrunk. They have fewer regulatory requirements than banks, lower overhead, and often charge fewer fees. Many people use both — a bank for checking and a credit union for savings or a loan.

What counts as a bank and what does not

The definition matters because it shapes the count. A bank is a federally or state-chartered institution that accepts deposits and makes loans. It must carry FDIC or state insurance. A savings and loan is similar but historically focused on mortgage lending. A credit union is member-owned and insured by the NCUA. A fintech lender like Lending Club or SoFi may make loans but does not take deposits, so it is not a bank.

Online banks like Ally or Marcus are banks — they have federal charters and FDIC insurance — but they have no physical branches. They are counted in the 4,700. A payday lender or a pawn shop is not a bank, even if it lends money, because it does not take deposits and is not federally chartered.

How this affects you as a customer

The shrinking number of banks means fewer choices in some places. If your local bank gets bought by a larger one, you might lose a branch or see fees rise. Consolidation can also mean slower service — a small bank might approve a loan in a week, while a large bank takes three weeks because decisions go through a central office.

On the other hand, larger banks have more resources for security, fraud protection, and technology. They also have FDIC insurance up to $250,000 per account, the same as small banks. The trade-off is not straightforward: you gain stability and technology but lose local decision-making and personal service.

Frequently Asked Questions

How many banks were there 10 years ago?

In 2014, there were roughly 6,800 FDIC-insured banks. The decline from 6,800 to 4,700 reflects mergers and failures following the 2008 crisis, plus ongoing consolidation as smaller banks sold to larger ones to avoid compliance costs.

Is my money safe if my bank is small?

Yes, as long as the bank carries FDIC insurance, which nearly all do. FDIC insurance covers up to $250,000 per depositor per bank, regardless of the bank's size. You can check a bank's FDIC status on the FDIC website's BankFind tool.

Why do new banks almost never open?

Starting a bank requires a federal or state charter, which means proving you have enough capital, a solid business plan, and a management team. Regulators also require extensive compliance systems before you open. The cost and regulatory burden make it impractical for most entrepreneurs, so new banks are rare.

Are credit unions included in the 4,700 number?

No. Credit unions are counted separately by the NCUA. There are roughly 4,800 credit unions, but they are not part of the bank count because they operate under different rules and are member-owned rather than shareholder-owned.

What happens when two banks merge?

The two banks become one, so the total count drops by one. Customers of the smaller bank usually keep their accounts but may see branch closures, fee changes, or a move to the larger bank's systems. The FDIC monitors mergers to may support they do not reduce competition in a local market.