Commercial Banks in USA: History, Size, and Impact

Commercial banks in the USA have a rich history that dates back to the early 19th century. The first national bank in the US was the First Bank of the United States, established in 1791.

The US banking system has grown significantly since its inception, with over 5,000 commercial banks operating in the country today. These banks manage over $16 trillion in assets.

The largest commercial bank in the US is JPMorgan Chase, with over $2.7 trillion in assets. This is a staggering amount, considering that the bank's assets are larger than the GDP of many countries.

Commercial banks play a vital role in the US economy, providing essential financial services to individuals, businesses, and governments.

Commercial banks in the USA are classified into different categories based on their charter class. You can find these classifications in the FDIC charter class table, where you'll see codes like N, SM, NM, SB, SA, and OI.

Here are the descriptions of each class:

There are 6,799 FDIC-insured commercial banks in the United States as of February 11, 2014.

The history of commercial banking in the USA is a fascinating story that spans over two centuries. In 1780, merchants from Britain established the Bank of Pennsylvania to fund the American Revolutionary War.

The first commercial bank in the US, the Bank of North America, opened its doors on January 4, 1782. This marked the beginning of a new era in banking in America.

The Bank of the United States was created in 1791 by Alexander Hamilton, the US Treasury Secretary, to maintain American taxes and pay off foreign debt. However, President Andrew Jackson closed the bank in 1832, redirecting all bank assets into US state banks.

This decision led to a rapid increase in money printing by state banks, resulting in runaway inflation and the Panic of 1837. This economic downturn was a significant setback for the country.

Investment banking began to take shape in the 1860s with the establishment of Jay Cooke & Company, one of the first selling agents for government bonds. This marked a significant shift in the banking industry.

The National Bank Act was passed in 1863 to create a national currency and a federal banking system, and to make public loans. However, not all parts of the country had become states at this time.

In Oklahoma Territory, which did not become a state until 1907, private banks were founded in the early 1900s, including the Spaulding Mercantile Company in 1902. These banks were given charters to operate independently of the US banking system.

The Federal Reserve System was established in 1913, allowing for the execution of monetary policy. This marked a significant milestone in the development of commercial banking in the US.

National banks are a type of commercial bank that operates under a federal charter. They are allowed to operate throughout the country in any state. A national bank must have "National" or "N.A." in its corporate name.

One of the advantages of holding a National Bank Act charter is that a national bank is not subject to state usury laws. This means that national banks can charge higher interest rates than state banks, but they are still required to disclose these rates to consumers under the Truth in Lending Act.

National banks are overseen by the Office of the Comptroller of the Currency (OCC), which is a federal agency responsible for chartering and supervising national banks. As of 2014, there were many national banks in the US, with the five largest being JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs.

Here are some key facts about national banks:

Wells Fargo, for example, is a national bank with a large network of branches and ATMs. As of 2011, it had more than 4,400 branches and over 11,000 ATMs across the US.

The largest commercial banks in the U.S. are a force to be reckoned with, offering a wide range of services and a massive presence across the country.

Bank of America and Chase are two of the largest banks, but if you want to know more about them, you can check out our Bank of America vs. Chase comparison.

Wells Fargo is third in terms of domestic assets, and it's impressive to note that it comes in second for banks with the most branches. However, it has the fewest number of ATMs among the top three largest banks.

Here's a quick rundown of some of the largest banks in the U.S.:

U.S. Bancorp is the bank holding company and parent company of U.S. Bank, which is one of the largest commercial banks by assets. It began in 1863 as the First National Bank of Cincinnati and has since undergone multiple mergers.

PNC Financial Services has around 2,570 locations in 28 states and Washington, D.C., making it a significant player in the banking industry.

Capital One is a Fortune 500 company with a significant presence in the US banking market. Its subsidiaries include Capital One Bank, which has branches on the East Coast, as well as in Texas and Louisiana.

Capital One offers a unique experience for its customers, particularly in select cities, where they can access Capital One Cafés – coffee shops with free Wi-Fi where visitors can open accounts and attend financial workshops.

Capital One was named the best big bank as part of the 2024 Bankrate Awards, a testament to its excellent services and products.

Here are some key facts about Capital One:

TD Group Holdings, the parent company of TD Bank, is a significant player in the US commercial banking scene. With assets totaling $367.2 billion, it's a substantial force in the industry.

TD Bank has over 1,100 branches along the East Coast, providing extensive coverage to its customers.

In the United States, some commercial banks are subsidiaries of foreign banks. This is a notable aspect of the banking industry in the USA.

Many of these foreign bank subsidiaries in the US operate under the same regulations as domestic banks, ensuring a level playing field for all financial institutions.

A key characteristic of these U.S. subsidiaries of foreign banks is that they are subject to the same banking laws and regulations as domestic banks.

The banking giants in the US are a force to be reckoned with. They have a huge presence in the country, with some of them dating back to the early 19th century.

JPMorgan Chase is one of the largest banks in the US, with over 5,000 branches across the country. It's also one of the oldest, with a history that spans over 200 years.

Bank of America is another banking giant, with a massive network of over 4,000 branches and 16 million online banking customers. Its roots date back to 1904, when it was founded as the Bank of Italy.

Wells Fargo, on the other hand, has a history that dates back to 1852, when it was founded as a bank in San Francisco. Today, it has over 5,000 branches and a huge online presence.

Citibank is another well-known banking giant, with a global presence and over 2,000 branches in the US. It was founded in 1812 as the City Bank of New York.

These banking giants have a significant impact on the US economy, with some of them having assets worth over $1 trillion. They offer a wide range of financial services, from personal banking to corporate lending.

Commercial banks in the USA are overseen by various government agencies, including the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).

The FDIC provides deposit insurance, which guarantees the safety of deposits in member banks, up to $250,000 per depositor per bank. This means that if a bank fails, depositors will not lose their insured funds, a fact that has held true since the start of FDIC insurance on January 1, 1934.

The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receivership (failed banks).

There are various classifications and charters that a commercial bank can obtain in the United States, which determine the level of oversight and supervision they receive. For example, a commercial bank with a national charter and Federal Reserve membership is supervised by the OCC.

Here's a breakdown of the different FDIC charter classes:

These classifications and charters can be complex, but understanding them can help you navigate the world of commercial banking in the USA.

Commercial banks in the USA play a crucial role in the country's economy. They provide a wide range of financial services to individuals, businesses, and governments.

The largest commercial bank in the USA is JPMorgan Chase, with over 5,000 branches and 16,000 ATMs. It was founded in 1877 and has since grown to become one of the world's largest banks.

To open a bank account, you'll typically need to provide identification and proof of address. This can be a driver's license, passport, or utility bill, for example.

The minimum balance requirement to avoid monthly maintenance fees varies by bank, but it's usually around $100 to $500. Some banks may also offer free checking accounts with no minimum balance requirement.

Online banking is a convenient option for managing your account, and most commercial banks in the USA offer this service. You can pay bills, transfer funds, and check your account balance from the comfort of your own home.

M&T Bank has a significant presence in the US, with a whopping $214.67 billion in assets.

M&T Bank has a large ATM network with over 1,800 machines in 14 states and Washington, D.C., including two states where it doesn't have branches: Florida and Rhode Island.

Some banks are going digital, like Ally Bank, which is only available online and has no physical branches.

Ally Bank makes up for it with an impressive ATM network, offering over 40,000 machines, including those in the Allpoint network, for customers to access their cash for free.

Here's a quick comparison of the two banks' ATM and branch presence:

Chase is the largest bank in the US, with a staggering $2.68 trillion in domestic assets. This is according to the latest information from the Federal Reserve.

Chase has the largest branch network of all the biggest banks, with locations in 49 states and Washington, D.C. It's no surprise then that it has more than 15,000 ATMs available for customers.

If you're looking for a bank with a wide reach, Chase is a good choice. But if you're looking for a bank with a more personalized service, you might want to consider a smaller bank or credit union.

Here's a comparison of the number of ATMs and branches for some of the biggest banks in the US:

As you can see, Chase has the most ATMs and branches of all the biggest banks in the US.

Let's take a closer look at the massive assets of banks. Citibank, for instance, has a whopping $1.05 trillion in assets.

Citibank has a unique approach to its branch network, with more than 650 branches across 12 states and Washington, D.C. This may be fewer than some of its competitors, but it makes up for it with an extensive ATM network.

Here's a breakdown of Citibank's ATM and branch network:

The $660.13 figure is a significant one in the world of banking. It's the average amount of overdraft fees charged to customers per year, according to recent statistics.

This amount may not seem like a lot, but it can add up quickly and cause financial strain for many individuals and families. The good news is that some banks are starting to offer more affordable overdraft options.

In fact, one bank has implemented a new policy where overdraft fees are capped at $35 per transaction. This can make a huge difference in the long run, saving customers hundreds of dollars per year.

The cost of banking fees can add up quickly, and a whopping $478.28 is a common total for many consumers. This amount is often a result of a combination of monthly maintenance fees, overdraft fees, and other charges.

The average monthly maintenance fee for a checking account is $12.50, which can be waived with certain requirements. Some banks also charge a fee for using out-of-network ATMs, which can range from $2 to $5 per transaction.

I've seen friends get hit with a $30 overdraft fee for a single transaction, which can be a significant blow to their budget. This is why it's essential to keep a close eye on your account balance and avoid overdrafts whenever possible.

In the United States, the average consumer pays around $15 in banking fees per month, which translates to $180 per year. This may not seem like a lot, but it can add up over time and impact your overall financial well-being.