The current count of banks in the USA

As of 2024, there are approximately 4,500 to 5,000 banks operating in the United States, depending on how you count them. The exact number shifts month to month because banks merge, close, or open regularly. The Federal Deposit Insurance Corporation (FDIC), which insures deposits at most banks, tracks this number and publishes it quarterly.

The count includes commercial banks, savings banks, and savings and loan associations — all institutions that take deposits and make loans. It does not include credit unions, which are separate financial cooperatives, or investment-only firms like brokerage houses.

The number has been falling for decades. In 1985, there were roughly 14,000 banks in the USA. Consolidation through mergers, failures during economic downturns, and the growth of large national banks have shrunk the total significantly. The 2008 financial crisis accelerated this trend, and the COVID-19 pandemic led to additional closures.

Key Takeaways

  • The FDIC publishes the official count of insured banks quarterly, and the number hovers around 4,500 to 5,000 depending on recent mergers and closures.
  • The total has declined from roughly 14,000 banks in 1985 due to industry consolidation and economic pressures.
  • The count includes commercial banks, savings banks, and savings and loan associations, but excludes credit unions and investment firms.
  • A handful of very large banks control a significant portion of total deposits, while thousands of smaller regional and community banks serve local markets.

Why the number keeps changing

Banks disappear from the count through mergers, acquisitions, and failures. When two banks merge, the total goes down by one. When a bank fails — which happens occasionally during recessions or due to mismanagement — the FDIC typically arranges for another bank to take over its deposits and branches, or it pays out insured deposits directly.

New banks do open, but far less frequently than banks close or merge. Starting a bank requires significant capital, regulatory approval from both federal and state authorities, and a business plan that convinces regulators the bank will operate safely. Most new banks are small community institutions focused on a specific region or customer base.

The trend toward fewer, larger banks has been consistent for forty years. This consolidation means that while thousands of banks still exist, a small number of mega-banks — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and a few others — hold the majority of all deposits and assets in the system.

The difference between national and state-chartered banks

Banks in the USA operate under one of two charters: national or state. A national bank is chartered by the federal government (the Office of the Comptroller of the Currency, or OCC) and must follow federal rules. A state bank is chartered by the state where it operates and follows state rules, though it may also choose federal insurance and oversight.

Both types are counted in the total. National banks tend to be larger and more standardized across states. State banks can vary more in size and structure, and some operate only within their home state. The distinction matters mainly if you need to file a complaint or understand which regulator oversees a particular bank, but from a customer perspective, both types offer FDIC insurance on deposits up to $250,000 per account.

How the FDIC tracks the bank count

The FDIC maintains a database called the FDIC Institution Directory, which is free and searchable online. It lists every bank it insures, along with branch locations, assets, and regulatory status. The FDIC updates this directory regularly and publishes summary statistics quarterly in its Quarterly Banking Profile.

If you want to know the exact current count, the Quarterly Banking Profile is the authoritative source. It breaks down the numbers by bank size, state, and type of charter. The FDIC also publishes data on bank failures, mergers, and other structural changes in the industry.

You can search the FDIC Institution Directory to confirm whether a specific bank is insured, find its main office location, and see how long it has been in operation. This is useful if you are considering opening an account and want to verify the bank's regulatory standing.

Why most people interact with far fewer banks

Although thousands of banks exist, most Americans use one of the large national chains. JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup together hold roughly 40 to 45 percent of all deposits in the US banking system. This concentration means that despite the large total number of banks, the banking landscape is dominated by a handful of institutions with thousands of branches each.

Smaller regional and community banks serve specific geographic areas or customer niches. They may offer more personalized service or specialize in lending to local businesses, but they have far fewer branches and less national reach. Credit unions, which are not counted in the bank total, serve members in specific industries or regions and have grown in popularity in recent decades.

Frequently Asked Questions

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

Yes, as long as the bank is FDIC-insured. You can search the FDIC Institution Directory to confirm. FDIC insurance protects your deposits up to $250,000 per account category, regardless of the bank's size. Smaller banks fail occasionally, but the FDIC steps in to protect insured deposits.

Why do banks keep merging if there are already so many?

Mergers happen because larger banks can operate more efficiently, spread costs across more customers, and compete better against other large banks. Smaller banks may merge to survive economic downturns or to gain access to new technology and services. Regulators allow most mergers as long as they do not reduce competition too severely in a local market.

How do I find out which bank is the largest?

JPMorgan Chase is the largest US bank by assets, followed by Bank of America, Wells Fargo, and Citigroup. You can find current rankings and asset totals on the FDIC website or in financial news sources. The rankings shift slightly year to year based on mergers and growth.

Are credit unions included in the bank count?

No. Credit unions are separate financial institutions and are not counted as banks. They are insured by the National Credit Union Administration (NCUA) rather than the FDIC. There are roughly 4,800 credit unions in the USA, so the total number of deposit-taking financial institutions is much higher than the bank count alone.