The number of FDIC-insured U.S. banks has fallen from more than 14,000 in the mid-1980s to about 4,300 today, mostly through mergers rather than failures. The result is a system where a handful of very large banks hold a big share of all assets, which is why some savers diversify part of their wealth outside the banking system.
Key takeaways
- In March 2024, Wall Street on Parade reported that 9,830 banks had disappeared since 1985 and that the four largest held 39% of U.S. bank assets.1
- The FDIC counted 4,336 insured banks and savings institutions at the end of 2025.2
- As of June 30, 2026, the four largest U.S. commercial banks held about $10.6 trillion in combined assets.3
- Mergers, not failures, are the main reason the bank count keeps shrinking.4
- FDIC insurance covers deposits up to $250,000 per depositor, per bank, per ownership category, and doesn’t cover investments.5
What did the report on disappearing banks find?
Writing in March 2024, Pam and Russ Martens of Wall Street on Parade reported that the U.S. went from 14,417 federally insured banks in 1985 to 4,587 at the end of 2023, citing FDIC data.1
They also cited Federal Reserve data showing that JPMorgan Chase, Bank of America, Wells Fargo, and Citibank together held about $9.3 trillion, or 39% of U.S. bank assets. The authors argue that deregulation allowed “too-big-to-fail” banks to form.1
That’s their argument. Below, we look at the current data and what it means for everyday savers.
Why have so many U.S. banks disappeared?
Most banks didn’t fail. They were bought by or merged with other banks, while very few new banks were chartered to replace them.
- Mergers: the St. Louis Fed noted in 2021 that mergers were running at about 4% of the bank population each year.4
- Few new banks: only nine new commercial banks were chartered in 2021, according to the same analysis.4
- Failures: these spiked in the 1980s–90s and in 2007–2009, but had nearly stopped after 2015 until 2023.4
The St. Louis Fed also notes the commercial bank count peaked at 30,456 back in 1921, so consolidation is a long-running trend.4
How much do the biggest banks control today?
As of mid-2026, the four largest U.S. commercial banks held roughly $10.6 trillion in combined assets, up from the $9.3 trillion cited for 2023.3
| Bank (national bank charter) | Consolidated assets, June 30, 2026 |
|---|---|
| JPMorgan Chase Bank | About $4.09 trillion |
| Bank of America | About $2.65 trillion |
| Citibank | About $1.98 trillion |
| Wells Fargo Bank | About $1.91 trillion |
Source: Federal Reserve Large Commercial Banks release.3 We haven’t recalculated their exact share of total U.S. bank assets for 2026, so treat the 39% figure as a 2023 snapshot.
Does bank consolidation make the system riskier?
Economists disagree. Larger banks can be more diversified, but when a big bank gets into trouble, the fallout is larger and governments often feel forced to step in.
2023 showed how quickly stress can spread. Five banks with $548.7 billion in combined assets failed that year, a record total, including Silicon Valley Bank, Signature Bank, and First Republic.6
What does this mean for your savings and retirement?
Bank deposits remain protected up to FDIC limits, but concentration is a reason to make sure not all of your wealth depends on the same financial institutions.
- Know your coverage: FDIC insurance covers deposits up to $250,000 per depositor, per bank, per ownership category.5
- Know what isn’t covered: stocks, bonds, mutual funds, annuities, and safe deposit box contents are not FDIC-insured.5
- Diversify asset types: physical precious metals are a tangible asset that isn’t someone else’s liability. A gold IRA lets you hold them with IRA tax benefits, stored in an insured depository.
- Plan the move: our step-by-step funding guide explains transfers and rollovers.
Gold carries its own risks, including price swings and no income. It works best as one part of a diversified plan.
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Get My Free Guide Call (888) 444-2948Bank consolidation FAQs
How many banks are there in the U.S. today?
The FDIC counted 4,336 insured commercial banks and savings institutions at the end of 2025. That compares with more than 14,000 in the mid-1980s.
Why are there fewer banks than in the 1980s?
Mostly mergers and acquisitions, combined with very few new bank charters. Failures played a role in the 1980s, early 1990s, 2007–2009, and 2023, but mergers are the main driver.
Which are the largest banks in the U.S.?
By consolidated assets as of June 30, 2026, the largest were JPMorgan Chase, Bank of America, Citibank, and Wells Fargo. Together they held roughly $10.6 trillion, according to the Federal Reserve.
Is my money safe if my bank fails?
Deposits at FDIC-insured banks are protected up to $250,000 per depositor, per bank, per ownership category. Investment products such as stocks, bonds, and mutual funds are not covered by FDIC insurance.
Can gold help protect against banking risk?
Physical gold is a tangible asset that doesn’t depend on any bank’s balance sheet, which is why some savers use it for diversification. It doesn’t pay interest and its price can fall, so it’s usually one part of a broader plan.
About the author: John Murphy
[[ROLE AT ANTHEM GOLD GROUP]]. [[X YEARS]] of experience in [[precious metals / retirement planning / financial writing]]. [[One sentence on relevant background, e.g., number of clients helped, credentials, publications]].- Wall Street on Parade: Almost 10,000 U.S. banks have disappeared since 1985 (March 26, 2024)
- FDIC: Fourth quarter 2025 Quarterly Banking Profile press release
- Federal Reserve: Large Commercial Banks statistical release
- Federal Reserve Bank of St. Louis: Slow, steady decline in the number of U.S. banks continues
- FDIC: Understanding deposit insurance
- American Banker: Dramatic collapses made 2023 the biggest year ever for bank failures
This article is for general education only and isn’t tax, legal, or investment advice. Anthem Gold Group is not a licensed financial advisor. Consult a qualified professional before making retirement decisions.
