History of Bank in Timeline

A bank is a financial institution crucial for economic activity. Its primary function involves accepting deposits from the public, which in turn creates demand deposits. Simultaneously, banks provide loans, either directly or indirectly through capital markets. These lending activities are essential for facilitating economic growth by providing capital for individuals, businesses, and governments. Banks play a vital role in the monetary system and overall financial stability.

1979: Establishment of the FFIEC

In 1979, the Federal Financial Institutions Examination Council (FFIEC) was established to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions.

1985: Start of Bank Mergers and Acquisitions

Starting in 1985, banks engaged in around 28,798 mergers or acquisitions.

1999: Peak in Bank Mergers and Acquisitions

In 1999, a major wave in bank mergers and acquisitions peaked at around 460 bil. USD.

2004: Number of bank branches in Europe

In 2004, Germany, France, and Italy each had more than 30,000 branches – more than double the 15,000 branches in the United Kingdom.

2007: Peak in Bank Mergers and Acquisitions

In 2007, a major wave in bank mergers and acquisitions peaked at around 460 bil. USD.

2008: Regulators Force Banks to Issue Contingent Convertible Bonds

After the 2008 financial crisis, regulators required banks to issue Contingent convertible bonds (CoCos). These securities are designed to absorb losses when a bank's capital falls below a certain level, boosting capitalization.

2008: Brokered Deposits and Bank Failures during the 2008 Financial Crisis

During the 2008 financial crisis, banks that failed in the United States had, on average, four times more brokered deposits as a percent of their deposits than the average bank.

2008: Assets of Largest Banks Grow Amid Financial Crisis

In 2008, during adverse market conditions, the assets of the world's largest 1,000 banks grew by 6.8% to a record US$96.4 trillion, largely due to recapitalization, while profits declined by 85% to US$115 billion.

2008: 2008 Financial Crisis

In 2008, the financial crisis led to bank failures, including some of the world's largest banks, and sparked debate about bank regulation.

November 2009: China's Top Banks Branch Count

As of November 2009, China's top four banks had in excess of 67,000 branches.

2009: Global Investment Banking Fee Revenue Increase

In 2009, fee revenue generated by global investment banking totaled US$66.3 billion, up 12% on the previous year.

2015: US Bank Institutions and Branches

As of 2015, The United States had the most bank institutions (5,330) and branches (81,607) in the world.

2018: Merger and Acquisition Decline

Between 1985 and 2018, bank mergers and acquisitions deals declined -82% from 2007 until 2018.

2021: Citigroup Initiates Exit from Retail Banking Outside Core U.S. Market

In 2021, Citigroup began to exit retail banking outside of its core U.S. market.

2022: HSBC Initiates Exit from U.S. Retail Market

In 2022, HSBC began to exit the U.S. retail market (except for its wealth management business).

March 2023: 2023 Global Banking Crisis

In March 2023, the global banking crisis emerged due to liquidity shortages and bank insolvencies, leading to three bank failures in the United States. Within two weeks, several of the world's largest banks either failed or were shut down by regulators.