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Number of U.S. banks at record low

  • The number of U.S. banks has dropped to below 7,000 for the first time since records began in 1934, falling to 6,891 in Q3 from a peak of over 18,000.
  • More than 10,000 banks disappeared between 1984 and 2011 due to consolidation or failure, with 17% collapsing. Tighter regulation makes it much harder to open banks.
  • However, overall bank deposits and assets have increased.
  • "Seven thousand is still an awful lot of banks," says David Kemper, CEO of Missouri-based Commerce Bancshares, especially with brick-and-mortar branches becoming less profitable.
  • However, there are those who worry that the loss of community banks hurts the economy, as they are more likely to lend to small businesses than big institutions are.
Comments (1)
  • bbro
    , contributor
    Comments (9835) | Send Message
    Still way too many banks...a dirty little secret is that a lot of the small banks tend not to be well capitalized and their loan portfolios are not
    very well diversified....
    3 Dec 2013, 07:13 AM Reply Like
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