In a couple words, the scene might best be captured by major "D I S R U P T I O N" answered by long-term "R E S I L I E N C Y." Author John Steel Gordon, An Empire of Wealth, The Great Game, and Hamilton's Blessing, states there were 29,798 banks in operation in 1921. From 1921 until 1933 the industry was in free-fall due to the Great Depression, but that began to turn around on March 9, 1933 when Franklin D. Roosevelt signed the Emergency Banking Relief Act (EBRA). On Sunday, March 12th he delivered his first fireside chat and the EBRA kicked in on Monday, March 13th. Crisis had been averted, confidence in the banking system began to return.
In the last 90 years the industry has endured many global economic cycles accompanied by wide interest rate swings and a plethora of regulation, while largely managing a shift from a primarily physical business model to a hybrid of physical and digital. Yes, the industry looks very different today, but unlike other countries around the globe, there were still 4,587 banks and thrifts across the US at the end of 2023.
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