History of Bank in Timeline

A bank is a financial institution vital to the economy. Its core function involves accepting deposits from the public, which in turn creates demand deposits. Concurrently, banks provide loans, directly influencing the flow of capital. Lending operations can be executed either directly by the bank or indirectly through participation in capital markets, thereby facilitating investment and economic activity.

1979: Establishment of the Federal Financial Institutions Examination Council (FFIEC) in 1979

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: Bank mergers and acquisitions between 1985 and 2018

Between 1985 and 2018, banks were involved in approximately 28,798 mergers or acquisitions, with a total known value of around 5,169 billion USD.

1999: Peak in bank mergers and acquisitions in 1999

In 1999, there was a major wave of bank mergers and acquisitions, peaking at around 460 billion USD.

2004: Number of bank branches in Germany, France, and Italy in 2004

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

2007: Peak in bank mergers and acquisitions in 2007

In 2007, there was another major wave of bank mergers and acquisitions, peaking at around 460 billion USD, followed by a steep decline.

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 percentage of their deposits than the average bank. These deposits, combined with risky real estate investments, contributed to the crisis.

2008: Regulators force banks to issue Contingent convertible bonds (CoCos)

Following the 2008 financial crisis, regulators mandated that banks issue Contingent Convertible Bonds (CoCos). These bonds are hybrid capital securities designed to absorb losses when a bank's capital falls below a certain threshold, thereby reducing debt and boosting bank capitalization.

2008: 2008 financial crisis leads to bank failures and debate about bank regulation

In 2008, the financial crisis caused bank failures, including some of the world's largest banks. This prompted debate about bank regulation.

2008: Assets of the largest 1,000 banks grow

In the 2008–2009 financial year, the assets of the world's largest 1,000 banks increased by 6.8% to a record US$96.4 trillion, despite profits declining by 85% to US$115 billion.

November 2009: Bank branches in China and Japan as of November 2009

As of November 2009, China's top four banks had over 67,000 branches, while Japan had 129 banks with 12,000 branches.

2009: Global investment in banking

In 2009, global investment in banking generated US$66.3 billion in fee revenue, marking a 12% increase from the previous year.

2015: The United States has the most banks in the world

As of 2015, the United States had the highest number of banks globally, with 5,330 institutions and 81,607 branches, reflecting the country's geographical and regulatory structure that supports numerous small to medium-sized institutions.

2018: Decline in bank mergers and acquisitions until 2018

From 2007 until 2018, there was a significant decline of -82% in bank mergers and acquisitions.

2021: Citigroup initiated an exit from retail banking outside of its core U.S. market in 2021

In 2021, Citigroup began to withdraw from retail banking operations outside of its main U.S. market.

2022: HSBC initiated an exit from the U.S. retail market in 2022

In 2022, HSBC started to exit from the U.S. retail market, with the exception of its wealth management business.

March 2023: Global banking crisis in March 2023

In March 2023, the global banking crisis unfolded with 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.