Community Banks in Decline, Struggle With High Regulatory Burden

The number of community banks has drastically declined since the turn of the century.

U.S. Rep.-elect French Hill (R-Ark.) delivers remarks in the House Chamber during the third day of elections for Speaker of the House at the U.S. Capitol Building in Washington, on Jan. 5, 2023. Win McNamee/Getty Images

News Analysis

The number of community banks—small financial institutions that are locally owned and operated—has significantly declined over the past 25 years, from more than 8,500 to around 4,000 today.