Number of US banks dropping

by Bernie Becker - 12/03/13 7:45 AM ET

The number of U.S. banks dropped below 7,000 this year – the fewest in at least eight decades.

Most of the shuttered banks were smaller, with assets of less than $100 million, The Wall Street Journal reports. The high water mark for banks was more than 18,000, and the number of banks has consistently declined since the late 1980s due to mergers, consolidations and other factors.

{mosads}The economy, regulations and interest rates have all played a role in the decreased number of banks, the Journal says. Advocates for community banks say the figures are worrisome, saying those smaller institutions play a key role in the economy.

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