It goes back farther than that. In 1911 there were 29,000 banks. The Federal Reserve Act passed in December of 1913. By 1915 there were 19,000 banks. The ex

It goes back farther than that. In 1911 there were 29,000 banks. The Federal Reserve Act passed in December of 1913. By 1915 there were 19,000 banks. The expansion of credit in the 1920s cause a surge in new banks reaching more than 29,000 again. When the credit fueled stock market crashed in 1929 many banks closed. By 1933 there were about 14,000 banks. Each business/credit cycle the number of banks grows when credit is easy and collapse and consolidate as loans default. Each cycle results in more consolidated banks. Nation wide credit cycles would not be possible without the Federal Reserve pulling the interest rate lever. https://www.fdic.gov/about/history/timeline/1900-1919.html https://www.fdic.gov/about/history/timeline/1900-1919.html https://www.bis.org/publ/work137.pdf https://www.bis.org/publ/work137.pdf