Bank / Credit Union
Number of US commercial banks decreases 45%, net income increases 207%
December 16, 2020
The total number of commercial banks in the U.S. has dropped by 45.65% between 2000 to 2020, according to areport by Finbold.com. That puts commercial banks closing at an average yearly rate of 3.15%, according to a press release.
In 2000, the number of commercial banks was 8,315, but by 2020, the total number of banks is projected to stand at 4,376. Between 2010 and 2020, the number of commercial banks dropped by about 32.87%. During that time struggling banks looked for for opportunities to merge with other banks to secure a future, according to the report.
The research also overviewed the net income of the U.S. commercial banks between 2000 and 2019. Despite the decline in physical banks, the cumulative revenue increased to 207.38%.
In 2000, the net income was $70.79 billion, but had jumped to $217.6 billion in 2019. The lowest net income was recorded in 2009 at -$11.61 billion. The record drop in revenue was registered in the wake of the economic crisis that hit the world.
