Number of FDIC-insured commercial banks in the U.S. 2000-2023

The number of FDIC-insured commercial banks in the United States increased for the first time during the observed period in 2023. At the end of 2023, there were 4,470 FDIC-insured commercial banks in the country, up from 4,136 a year earlier. The FDIC, Federal Deposit Insurance Corporation, is an agency that insures the banking system in the U.S. Between 2000 and 2023, the number of FDIC-insured commercial banks decreased sharply. Despite the dropping number of banks, the number of employees in the banking industry increased in the last two decades.

Why do banks need insurance?

The number of banks is shrinking, but the value of deposits in these banks is growing, amounting to trillions of U.S. dollars. The primary function of the FDIC is to insure these deposits up to 250,000 U.S. dollars. Under stable economic conditions, this task can be performed without particular difficulties. However, during economic uncertainties and recessions, it can be challenging. During the Global Financial Crisis, hundreds of FDIC-insured banks declared insolvency. Account holders were then eligible for compensation for the portion of their accounts that the FDIC insured.

Financial figures of the FDIC-insured banks

Except in times of deep recession, U.S. banks have a positive net operating income. It amounted to over 315 billion U.S. dollars in 2023. The value of funds borrowed by the U.S. FDIC-insured banks reached 1.4 trillion U.S. dollars that year.