Concentration vs. competition: Is 4,000+ banks too many for the US, or just right?
What we're thinking about: The US is home to over 4,700 FDIC-insured banks. It's not far off from the EU, which has 5,171, but stop and consider that the EU consists of 27 countries. The UK currently has 365 banks, and Canada has 83.
Why does the US have so many banks, and is this staggering number a good or bad thing?
A brief history lesson: Two schools of thought emerged when the US was founded regarding the construction of its banking system.
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