Question

. Go to http://www2.fdic.gov/hsob/index.asp. Select “Commercial Banks,” and then select “Number of Institutions, Branches, and Total Offices.” If you look at the trend in the number of bank branches, does the public currently appear to have more or less access to banking facilities? How many banks were there in 1934, and how many are there now? Does this data indicate that the trend toward consolidation is continuing?

Short answer

In the year 1934, there were 14,146 banks. In comparison to 2017, there are only 4918 banks.

Step-by-step solution

Step 1. Introduction

The process of two or more banks merging to reap the benefits of a conglomerate having better access to capital, consumers, and risk diversification is known as bank consolidation. While the number of bank branches has steadily increased, there are today fewer banks operating than there were in 1934.

Step 2. Explanation

There are 79,163 bank branches in the United States as of 2017. There is an absolute rise from zero branches in 1934, implying improved availability and extension of banking services throughout the United States. In the year 1934, there were 14,146 financial establishments. In comparison to 2017, there are only 4918 banks. As a result, the trend toward consolidation began and is now ongoing in order to benefit from large-scale operations, expertise, and a wider reach.