The US banking industry has faced financial stress after the collapse of Silicon Valley, Signature, and First Republic Banks. This is partially because a small number of institutions control the majority of banking industry assets.
Bank failures can cause depositors to worry about the stability of the financial industry and lead to general market volatility.
As the US banking industry continues to consolidate through mergers and acquisitions, how have assets among banks changed over time, and which institutions hold the most money?
How have bank assets changed over time?
By the end of 2022, banks in the US owned a combined $22.3 trillion in assets, up 32% over the last decade after adjusting for inflation.
Over half of bank assets are net loans and leases, followed by investments and cash and due, which refers to the money a bank has on hand. The rest is made up of other investments, property, equipment, or certain intangible assets, such as intellectual property.
In 2022, US banks also held a combined $20.2 trillion in liabilities, 90% of which came from deposits.
While US commercial bankassets have grown steadily over the past several decades, the number of commercial banks has declined since the 1980s.
The reasons behind this decline are multi-faceted, including a series of legislative developments during the 1980s that made the finance industry more competitive.[1] In the aftermath of the Banking Crises of the 1980s and 1990s, more than 2,300 Federal Deposit Insurance Corporation-insured banks closed between 1980 and 1994.[2]
What are the largest banks in the US today?
As of December 2022, the largest commercial bank in the US is JPMorgan Chase, controlling approximately $3.2 trillion in assets. Bank of America follows with $2.4 trillion, then Citibank with $1.8 trillion.
Combined, the 10 largest banks in the US own more than half of all assets in commercial banking.
Over the past several decades, the largest banks in the US have used mergers and acquisitions to consolidate their assets substantially. Mergers and acquisitions occur when a more extensive commercial bank acquires a smaller institution and absorbs its assets and liabilities.
Banks typically go through this process either because the smaller institution is at risk of collapsing or to combine assets and form a relatively wealthier commercial bank.
Many of the most prominent banking acquisitions in recent years occurred during the Great Recession.
Last updated
December 31, 2022
Annual Historical Bank Data
- [1]
Such legislation includes the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), the Garn-St Germain Depository Institutions Act of 1982, the Competitive Equality Banking Act of 1987 (CEBA), and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
- [2]
This figure comes from the most recent FDIC data on bank failures, which includes banks and saving institutions thatwere bought after failure. There are several ways to define a bank failure, so this number can vary depending on the primary source.
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FAQs
According to the most recent data, community banks control $3.2 trillion in assets (about $811 million per bank), while regional banks control just under $3.1 trillion in total assets (about $29.7 billion per bank). For comparison, JPMorgan Chase, the largest bank in the US, held over $3.2 trillion in assets in 2022.
How much money does Bank of America control? ›
As of December 2022, the largest commercial bank in the US is JPMorgan Chase, controlling approximately $3.2 trillion in assets. Bank of America follows with $2.4 trillion, then Citibank with $1.8 trillion.
How much cash do banks keep on hand in the USA? ›
Banks tend to keep only enough cash in the vault to meet their anticipated transaction needs. Very small banks may only keep $50,000 or less on hand, while larger banks might keep as much as $200,000 or more available for transactions. This surprises many people who assume bank vaults are always full of cash.
What bank controls the most money? ›
JPMorgan Chase is the top largest bank in the US, with a balance sheet total of $3.31 trillion.
Do banks control the economy? ›
Banks also play a central role in the transmission of monetary policy, one of the government's most important tools for achieving economic growth without inflation. The central bank controls the money supply at the national level, while banks facilitate the flow of money in the markets within which they operate.
How much of Bank of America is owned by China? ›
No, Bank of America isn't owned by China. BofA is an American multinational investment bank that has a partnership with China Construction Bank. In 2011 they decided to sell about half of their stake (about 13.1 billion) in the Chinese company.
Which family owns Bank of America? ›
Berkshire Hathaway (BRK. A 0.33%)(BRK. B 0.18%): Warren Buffett's Berkshire Hathaway is the largest Bank of America shareholder, with 1.03 billion shares amounting to a 13% stake. As of March 2024, it was the second-largest of Warren Buffett's stock holdings after Apple (AAPL -0.04%), worth almost $37 billion.
How much cash can you legally keep at home in USA? ›
While it is legal to keep as much as money as you want at home, the standard limit for cash that is covered under a standard home insurance policy is $200, according to the American Property Casualty Insurance Association.
Can banks seize your money if the economy fails? ›
It indicates an expandable section or menu, or sometimes previous / next navigation options. Your money is safe in a bank, even during an economic decline like a recession. Up to $250,000 per depositor, per account ownership category, is protected by the FDIC or NCUA at a federally insured financial institution.
What is the safest bank in the US? ›
JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.
The Most Popular Banks for Millionaires
- JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. ...
- Bank of America Private Bank. ...
- Citi Private Bank. ...
- Chase Private Client.
In working with quite a few billionaires in the banking industry you will find that billionaires and their families will normally bank at many of the large private banks in the US. Banks like Goldman Sachs and JP Morgan offer banking services on a level that you and I have never seen.
What is the #1 bank in America? ›
Summary of the Largest Banks in the U.S.
| Ranking | Bank | Headquarters |
|---|
| 1 | JPMorgan Chase | New York, NY |
| 2 | Bank of America | Charlotte, North Carolina |
| 3 | Wells Fargo | San Francisco, California |
| 4 | Citibank | New York, New York |
6 more rowsMar 27, 2024
Required reserves are to give the Federal Reserve control over the amount of lending or deposits that banks can create. In other words, required reserves help the Fed control credit and money creation. Banks cannot loan beyond their excess reserves.
Where does the Fed get its money? ›
The Federal Reserve is not funded by congressional appropriations. Its operations are financed primarily from the interest earned on the securities it owns—securities acquired in the course of the Federal Reserve's open market operations.
How much money do banks actually have? ›
The graph shows that banks hold about $75 billion in their vaults at any moment, which translates to about $230 for each U.S. resident. This doesn't seem like a lot, as many people have more than that deposited in an account.
Who controls the amount of money in the US? ›
Just as Congress and the president control fiscal policy, the Federal Reserve System dominates monetary policy, the control of the supply and cost of money.
How much debt does Bank of America have? ›
Total debt on the balance sheet as of March 2024 : $335.24 B
According to Bank of America 's latest financial reports the company's total debt is $335.24 B. A company's total debt is the sum of all current and non-current debts.
How much money does Bank of America deposit in total? ›
Top 10 American Banks by Total Deposits:
Bank of America ($1,929,333,000 total deposits) Wells Fargo Bank ($1,399,274,000 total deposits) Citibank ($777,024,000 total deposits) U.S. Bank ($453,331,532 total deposits)
Who owns the majority of Bank of America? ›
Berkshire Hathaway Inc. owns the most shares of Bank of America (BAC). What is the significance of the ownership structure for a publicly traded company?
