An Explanation of the Changes in the Number of Commercial Banks and Branches Across the US

The U.S. commercial banking industry has undergone substantial consolidation and structural changes over the past four decades, resulting in a dramatically altered landscape when compared to the 1980s. In 1984, there were 14,483 FDIC-insured commercial banks across the United States. However, by 2023, that number had fallen to 4,027, representing a 72.19% decrease. In this article, we revisit a previous farmdoc daily article (see farmdoc daily, May 25, 2012) and examine how the number of commercial banks and their branches have trended since 2011, as well as explore the factors contributing to these changes.