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Why the US has fewer banks

The century-long decline in the number of US commercial banks reveals shifts in industry dynamics and regulations. This article has the data and history on how the United States has lost 71% of its banks over the last four decades and what that means for the industry’s stability.

• In 1921, the US had 30,456 commercial banks; in 2022, it had 4,135 (down 86%).

• Bank failures explain some of this decline. Still, mergers are increasingly common — particularly after such deregulation acts as the Depository Institutions Deregulation and Monetary Control Act of 1980. 

• The repeal of the Glass-Steagall Act in 1999 paved the way for commercial and investment banks to merge, consolidating the banking industry further.
  
  

• Since 2003, most banking sector losses have been community banks, either through bankruptcy or, more commonly, acquisition by larger institutions.
  
  

• Over the past decade, more banks have closed than opened. While the Federal Deposit Insurance Corporation, an independent agency that maintains stability and public confidence in the nation’s financial system, says it doesn’t want to prop up poorly managed banks, it’s indicated that policymakers should avoid the temptation to prescribe more regulations.
  
  

See more about the decline in banks here, then see the facts on the history of US bank failures.

How many people have left California for Texas?

Interstate migration trends can reflect shifting societal patterns. Factors such as job prospects, housing costs, and lifestyle choices shape these population movements. This knowledge is crucial for policymakers, businesses, and everyday people planning for the future. Here are closer looks at population losses and gains in two of the nation’s biggest states: California and Texas.

• Texas gained 105,000 residents from California alone throughout 2020. That’s the highest number of out-of-state transplants moving to Texas. But since Texas is one of the nation’s most populous states, recent movers from California comprised only 0.36% of the 2021 Texas population.

• Around 596,000 Americans from other states moved to Texas in 2020. With 421,000 Texans also leaving the state, Texas gained a net 177,000 residents through domestic migration.

  
  

• Arizona gained the second most residents from California, 63,000 people, and Nevada followed with 55,000.

•  However, Nevada and Idaho had the highest proportion of recent California transplants: 1.74% and 1.38% of their respective populations.  

  
  

• Job searches, easier commutes, and other work-related reasons were the most common explanations for interstate migration from 2000 to 2019. Family reasons, such as marriage, were the second most common.
  
  

See the facts on the states Californians moved to and more on the states people left to go live in Texas.

Data behind the news

Today is World Refugee Day. Get the facts on where many refugees resettle in the US.

Tropical Storm Bret is no longer expected to turn into a hurricane. How does NOAA predict hurricanes? Find out here.

Don’t forget to take the weekly fact quiz!

One last fact

The nation exported a record $3 trillion in goods and services last year, roughly $250 billion more than in 2021 (after adjusting for inflation). Most exported goods went to Canada ($356.1 billion), Mexico ($324.4 billion), China ($153.8), Japan ($80.3 billion), and the United Kingdom ($77.3 billion). The most common exports were crude oil and other petroleum products, industrial machinery, electronics, and plastic materials.