Magazine : Archives : 3rd Quarter 2018

Point of View

Why Be Big? At the end of 1990, there were 15,158 commercial banks and thrifts in the United States, according to the Federal Deposit Insurance Corp. By the end of last year, there were just 5,670. That, according to my calculation, is a 62.6 percent reduction in the number of banks over the last 27 years. Most of the decrease is attributable to the wave of acquisitions that have occurred throughout that period of time, as well as a significant number of failures during economic downturns in 1990-1991, and again in 2007-2009. One consequence of this drastic reduction in the...