Why The U.S. Has 4,500 Banks And Canada Has 79

Canada has 79 banks in contrast to America’s nearly 4,500. But the U.S. banking industry is shrinking, with the number of FDIC-insured banks in the U.S. down by nearly half since 2005. Canada’s banking industry shows that concentration and simplified regulation can lead to a more stable financial system. Yet experts warn that consolidation in the U.S. could stifle innovation, reduce competition, hurt small businesses, create more banks that are too big to fail, and have negative consequences for the economy at large. Watch the video above to learn more about why America's banking industry is shrinking and what the U.S. can learn from Canada's more concentrated system.

Chapters
0:00 Introduction
1:41 - Canada’s resilient banks
4:40 - High risk, high reward
8:54 - Bank consolidation in the U.S.

Produced and Edited by: Macklin Fishman
Animation: Emily Park, Jason Reginato
Senior Director of Video: Lindsey Jacobson, Jeniece Pettitt
Additional Footage: Getty Images

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Why The U.S. Has 4,500 Banks And Canada Has 79

Post from CNBC on August 28, 2025

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