America’s Banks Will Continue to Consolidate

The number of banks has gone down 50% in the last 20 years, but it still has a long way to go before it is similar in nature to other countries.

Larger banks will continue to scoop up regional banks.

In contrast, Canada has fewer than 80 banks in total and yet is considered one of the more stable systems in the world, with the banking sector considered fully prepared for an economic downturn.

Critics point out, however, that whenever there is limited competition, there is less innovation and less choice for consumers.

While the U.S. banks have halved in the last two decades, there are still 4,500 banks in the country.

Ironically, stricter compliance standards may fuel even quicker consolidation in 2026.