The Biggest Banks in the United States

The banking industry in the United States is a vital part of the country’s economy and financial system. It plays a crucial role in facilitating economic growth, managing monetary policy, and providing financial services to individuals and businesses.

History of Banking in the United States

The first bank established in North America was The Bank of North America, founded in 1781 by Congress to help finance the Revolutionary War. However, it was not until 1791 that the First Bank of the United States became the first central bank in the country.

In 1863, during Abraham Lincoln’s presidency, Congress passed legislation that established a national banking system with stricter regulations for banks across state lines. This move aimed to create stability and prevent fraud within the banking sector.

In 1913, with the passage of The Federal Reserve Act under Woodrow Wilson’s presidency, The Federal Reserve System was created as America’s central bank. This move aimed to provide a more flexible yet centralized approach to regulating monetary policy.

Structure of Banking Industry

The U.S. banking industry is divided into two main categories: commercial banks and investment banks.

Commercial Banks: These are institutions that take deposits from customers and use them to lend money through loans or invest them for their own gain. They also offer other services such as checking accounts, savings accounts , and credit cards. Commercial banks are further divided into three types: national banks, state-chartered banks, and credit unions.

Investment Banks: These institutions help companies raise capital by issuing securities (stocks and bonds) to investors. They also provide advisory services for mergers and acquisitions, underwriting of new securities, and trading activities. Investment banks do not take deposits from customers.

Regulatory Bodies

The U.S. banking industry is heavily regulated to ensure stability and protect consumers. The primary regulatory bodies include:

1. Federal Reserve System (the Fed): The Fed is the central bank of the United States responsible for setting monetary policy, supervising and regulating banks, and maintaining financial stability.

2. Federal Deposit Insurance Corporation (FDIC): The FDIC was created in 1933 to insure bank deposits up to a certain amount in case of bank failures.

3. Office of the Comptroller of the Currency (OCC): The OCC is an independent bureau within the U.S Department of Treasury that oversees all national banks and federal savings associations.

4. National Credit Union Administration (NCUA): The NCUA regulates federally chartered credit unions and provides insurance for member deposits.

Factors that Determine the Size and Success of a Bank

1. Asset Base

2. Capitalization

3. Profitability

4. Market Share

Top 25 Biggest Banks in the US and their Rankings

1) JPMorgan Chase & Co

With over $3 trillion in assets, JPMorgan Chase & Co is currently the largest bank in the United States. It was formed through a merger between J.P Morgan & Co and Chase Manhattan Corporation in 2000. The company offers various financial services including retail banking, commercial banking, investment management, wealth management, and more. JPMorgan Chase & Co has been consistently ranked among the top banks globally and was named as “World’s Most Admired Companies” by Fortune Magazine for six consecutive years.

2) Bank of America Corp

Bank of America Corp holds second place with approximately $2.7 trillion in assets under its management. Founded in 1904, it provides a wide range of financial products and services such as consumer banking, corporate banking, asset management, investment banking to name a few. Bank of America Corp operates through several subsidiaries including Merrill Lynch Wealth Management which offers brokerage and investment advisory services to clients worldwide.

3) Wells Fargo & Co

Wells Fargo & Co was founded during California’s Gold Rush era and has grown to become the third-largest bank in the US with over $1.9 trillion in assets. The company offers a diverse range of financial services including banking, mortgage, investment, and insurance products to individuals and businesses. It has consistently been recognized for its customer service and was ranked as one of the “World’s Most Admired Companies” by Fortune Magazine.

4) Citigroup Inc

Citigroup Inc holds fourth place with over $1.8 trillion in total assets. It was formed through a merger between Citicorp and Travelers Group in 1998 and is one of the leading global banks providing financial services to customers in more than 160 countries. The company’s main business segments include institutional clients group, global consumer banking, and Citi Holdings.

5) U.S Bancorp

U.S Bancorp rounds out the top five biggest banks in the US with approximately $533 billion in total assets. Founded in 1863, it is the parent company of U.S Bank National Association which operates 3,106 branches across 26 states. The company offers various financial services such as consumer banking, wholesale banking, trust and wealth management services to individuals and businesses.

6) PNC Financial Services Group Inc

With over $457 billion in assets, PNC Financial Services Group Inc ranks sixth on the list. The company offers a wide range of banking and financial services including corporate and institutional banking, retail banking, asset management, and more. It has been consistently ranked among the top banks for its customer satisfaction and innovation.

7) Bank of New York Mellon Corp

Bank of New York Mellon Corp holds seventh place with over $461 billion in assets. Established in 1784, it is one of the oldest banking institutions in the US. The company provides investment management, wealth management, asset servicing, and treasury services to clients worldwide.

8) Truist Financial Corp

Formed through a merger between BB&T Corporation and SunTrust Banks Inc in 2019, Truist Financial Corp is currently the eighth-largest bank in the US with approximately $492 billion in assets. The company offers various financial products and services such as consumer and commercial banking, insurance, investment banking to name a few.

9) State Street Corporation

With over $279 billion in assets under its management, State Street Corporation is the ninth-largest bank in the US. Founded in 1792, it is one of the oldest financial institutions in the country. The company offers a wide range of investment management, research and trading, and other financial services to institutional clients worldwide.

10) Capital One Financial Corp

Capital One Financial Corp holds tenth place with approximately $354 billion in assets. Formed through a spinoff from Signet Banking Corporation in 1994, it is one of the leading credit card issuers and retail banking companies in the US. The company also offers auto loans, mortgages, and commercial banking services to its customers.

11) Charles Schwab Corporation

With over $358 billion in assets, Charles Schwab Corporation ranks eleventh on the list. The company offers brokerage, banking, and financial advisory services to individuals and institutions. It is also known for its online trading platform and has been consistently ranked among the top banks for customer satisfaction.

12) Northern Trust Corporation

Northern Trust Corporation holds twelfth place with approximately $276 billion in assets under its management. Founded in 1889, it primarily provides wealth management, asset servicing, and asset management services to clients worldwide. The company has been recognized for its strong corporate governance and was named as one of the “World’s Most Admired Companies” by Fortune Magazine.

13) American Express Company

American Express Company is a multinational financial services corporation with over $191 billion in assets. Founded in 1850, it is known for its credit card, charge card, and traveler’s cheque businesses. The company also offers financial planning, investment management, insurance products, and other financial services to customers globally.

14) Ally Financial Inc

With over $184 billion in assets under its management, Ally Financial Inc ranks fourteenth on the list of biggest banks in the US. Formerly known as GM AC Inc, the company offers a wide range of financial services including auto financing, insurance, and online banking to consumers and businesses.

15) Fifth Third Bancorp

Fifth Third Bancorp holds fifteenth place with approximately $202 billion in total assets. The company offers various financial products and services such as commercial banking, consumer lending, wealth management, investment advisory to clients in 10 states across the US.

16) KeyCorp

With over $171 billion in total assets, KeyCorp ranks sixteenth on the list. Founded in 1825, it provides banking services such as retail banking, commercial banking, and investment management to customers across 16 states in the US.

17) Regions Financial Corporation

Regions Financial Corporation is a regional bank holding company with over $147 billion in total assets. It offers various financial products and services including corporate banking, wealth management, mortgage and insurance to clients in 15 states across the Southern and Midwestern regions of the US.

18) Discover Financial Services

Discover Financial Services is a direct banking and payment services company with over $116 billion in assets. Founded in 1986, it provides credit card services, personal loans, home loans and online savings accounts to customers nationwide.

19) M&T Bank Corporation

M&T Bank Corporation holds nineteenth place with approximately $120 billion in assets. Founded in 1856, it primarily offers commercial and retail banking services to customers across eight states in the Northeastern and Mid-Atlantic regions of the US.

20) Huntington Bancshares Inc

Huntington Bancshares Inc is a bank holding company with over $121 billion in total assets. The company offers various financial products and services such as consumer banking, commercial banking, wealth management, and insurance through its subsidiaries to customers in six Midwestern states.

21) BBVA USA Bancshares Inc

With over $103 billion in assets, BBVA USA Bancshares Inc ranks twenty-first on the list. It is a subsidiary of BBVA USA and provides personal and commercial banking services to clients mainly in Texas, Alabama, Arizona, California, Colorado, Florida, New Mexico, and more.

22) First Republic Bank

First Republic Bank is a private bank with over $114 billion in assets under its management. The company offers personalized wealth management services including private banking, investment management to high net worth individuals and businesses.

23) Silicon Valley Bank

Silicon Valley Bank was founded in 1983 and has grown to become one of the largest banks in the US with over $85 billion in assets. The company primarily offers commercial banking services to technology and life science companies, private equity firms, venture capital firms, and more.

24) Comerica Incorporated

Comerica Incorporated ranks twenty-fourth on the list of biggest banks in the US with approximately $86 billion in total assets. Founded in 1849, it primarily offers commercial banking services to customers across Texas, California, Arizona, Florida, and Michigan.

25) Citizens Financial Group Inc

Citizens Financial Group Inc holds twenty-fifth place with over $179 billion in assets under its management. Founded in 1828, it is one of the oldest and largest financial institutions in the US providing retail and commercial banking services to customers across 11 states in the Northeastern and Midwestern regions of the country.

Conclusion

In conclusion, the biggest banks in the United States play a crucial role in our economy and financial system. With millions of customers and trillions of dollars in assets, these banks have a significant impact on our daily lives. While they may face criticism at times, there is no denying their importance and influence. As we continue to see changes and advancements in the banking industry, it will be interesting to see how these top banks adapt and continue to shape the landscape of finance in America.

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