Why does the US has so many banks compared to Asian countries where a few major big banks dominate?

economy : Why-does-the-US-has-so-many-banks-compared-to-Asian-countries-where-a-few-major-big-banks-dominate

Answer by Faisal Khan:

In the US, obtaining a bank license is not necessarily a Federal issue (as it is with other countries). In the US, the 50 States can issue their own independent licenses, even a single branch license (and the process is relatively simpler).

Compare this with other countries, getting a bank license means qualifying the minimum base set by the financial regulator (which in most cases is quite strict).

Many countries do not allow community banks to be opened, that are literally say single branch banks.  The US does, and this is why they have 8,000+ banks.

Why does the US has so many banks compared to Asian countries where a few major big banks dominate?

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