The current count of banks in the US
As of early 2024, there are approximately 4,700 to 4,800 banks operating in the United States. This number has been declining steadily over the past two decades—in 2000, there were roughly 8,500 banks. The decline reflects consolidation in the industry, where larger banks acquire smaller ones, and the closure of institutions that cannot compete with bigger players or that fail regulatory oversight.
The count includes all institutions that hold a banking charter from either the Office of the Comptroller of the Currency (federal charter) or a state banking regulator (state charter). It does not include credit unions, which are separate institutions, or non-bank financial companies like payment processors or investment firms.
The exact number shifts month to month as new banks open and others merge or close. The Federal Deposit Insurance Corporation (FDIC) publishes the most current count on its website, updated quarterly, so if you need a precise figure for a specific date, that is the source to check.
Key Takeaways
- The United States has roughly 4,700 to 4,800 banks as of 2024, down from about 8,500 in 2000 due to mergers and consolidation.
- Banks are counted if they hold a federal charter from the Comptroller of the Currency or a state banking charter, not by whether they have physical branches.
- The number changes regularly as banks merge, close, or open, so the FDIC publishes updated counts quarterly.
- The largest banks by assets control a much smaller share of total banks than they did 20 years ago, but they hold a larger share of total deposits.
Why the number has dropped so much
Bank consolidation accelerated after the 2008 financial crisis. Regulators encouraged mergers to stabilize failing institutions, and larger banks had more capital to absorb smaller ones. Between 2008 and 2015 alone, the number of banks fell by roughly 1,500. The pace has slowed since then, but consolidation continues.
Smaller banks also struggle with the cost of compliance. Federal and state regulations require banks to maintain certain capital levels, report to multiple regulators, and invest in cybersecurity and fraud prevention. A small community bank with $100 million in assets faces nearly the same regulatory burden as a bank with $1 billion in assets, which makes it harder for small institutions to remain profitable.
Technology has also shifted where people bank. Fewer customers visit physical branches, which were once the main way a bank attracted deposits. Online banks and fintech companies now offer checking accounts and savings products without the overhead of branch networks, putting pressure on traditional banks to consolidate or close branches.
How banks are counted and chartered
A bank must hold a charter—a legal permission to operate as a bank—from either a federal or state regulator. Federal charters come from the Comptroller of the Currency, which is part of the U.S. Treasury Department. State charters come from each state's banking regulator, usually called the Department of Banking or Division of Financial Institutions.
A bank with a state charter may also choose to join the Federal Reserve System and become a member bank, which subjects it to additional Federal Reserve oversight. A bank with a federal charter is automatically a member of the Federal Reserve. All banks, whether federal or state-chartered, must carry FDIC insurance to protect deposits up to $250,000 per account holder per bank.
The count of "banks" does not include credit unions, which are member-owned cooperatives and are chartered separately. As of 2024, there are roughly 4,500 credit unions in the US, a separate population from banks. The two types of institutions serve similar functions but operate under different rules and ownership structures.
The difference between bank count and market concentration
The number of banks has fallen, but the largest banks have grown much larger. The top 10 banks by assets now hold roughly 50% of all bank deposits in the country. In 2000, the top 10 held roughly 30%. This means fewer banks exist, but the biggest ones control a larger share of the money flowing through the system.
A reader might assume that fewer banks means less competition, and in some ways that is true. However, the rise of online banking and fintech has created new competition that did not exist 20 years ago. A customer in a small town can now open an account with an online bank headquartered in another state, which was not practical before the internet.
Regional and community banks still exist and serve local markets, but they represent a smaller slice of the total banking landscape. Some community banks have found a niche by offering personalized service or lending to small businesses in their area, which larger banks often decline to do.
What counts as a bank versus other financial institutions
The term "bank" has a specific legal meaning. An institution must take deposits from the public and make loans to be classified as a bank. It must also hold a banking charter. This definition excludes several types of financial institutions that offer bank-like services.
Credit unions take deposits and make loans but are member-owned and chartered separately. Savings and loan associations (also called thrifts) are similar to banks but historically focused on mortgage lending; they are now counted as banks for regulatory purposes. Investment firms, payment processors, and fintech companies may offer checking accounts or savings products but do not hold a banking charter, so they are not counted in the bank total.
A fintech company that offers a checking account usually partners with a chartered bank that actually holds the deposits. The fintech company provides the user interface and customer service, but the underlying bank is the one that is counted in the total. This is why the number of banks can seem low compared to the number of financial services companies a consumer can choose from.
How to find information about a specific bank
If you want to know whether a bank is chartered and insured, the FDIC maintains a searchable database called BankFind on its website. You can search by bank name, location, or FDIC certificate number. The database shows the bank's charter type, the regulator that oversees it, and whether it carries FDIC insurance.
The Federal Reserve also publishes data on bank assets, deposits, and branch counts through its National Information Center. This resource is more detailed and is used by researchers and industry analysts, but it is open to the public.
State banking regulators maintain their own lists of chartered banks within their state. If you want to know how many banks are chartered in a specific state, your state's banking regulator is the source. The number varies widely—California and Texas have the most banks, while smaller states may have only a few dozen.
Frequently Asked Questions
How many banks are there in my state?
The number varies by state. Large states like California, Texas, and New York have hundreds of banks each, while smaller states may have fewer than 50. Your state's banking regulator publishes a list of all chartered banks in that state, which is the most current source.
Is my money safe if I bank with a small bank?
Yes, as long as the bank carries FDIC insurance, which nearly all banks do. FDIC insurance protects deposits up to $250,000 per account holder per bank, regardless of the bank's size. You can verify a bank's FDIC status using the BankFind database on the FDIC website.
Why do online banks not count toward the total number of banks?
Online banks do count—they hold a banking charter and are included in the total. What differs is that they have no physical branches. When you open an account with an online bank, you are banking with a chartered institution that is counted in the 4,700-plus total.
What is the difference between a bank and a credit union?
Banks are for-profit institutions owned by shareholders, while credit unions are member-owned cooperatives. Both take deposits and make loans, but they are chartered separately and operate under different rules. Credit unions are not included in the bank count.
Are there more or fewer banks now than 10 years ago?
Fewer. In 2014, there were roughly 6,000 banks. By 2024, that number had fallen to about 4,700 to 4,800. The decline reflects ongoing consolidation, with larger banks acquiring smaller ones and some institutions closing.