The sharp reduction in the number of banks that has occurred since the mid 1990s has been due primarily to:

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The sharp reduction in the number of banks since the mid 1990s has been primarily due to bank mergers. This is because banks have been consolidating and merging with one another in order to achieve economies of scale and increase their competitive position. This trend has been driven by a variety of factors, including the growth of technology and increased competition from non-bank financial service providers. While there have been some bank failures and closings by federal regulators, these have not been the primary driver of consolidation in the banking industry. The revoking of state bank charters is also not a major factor, as state-chartered banks generally have lower regulatory burdens and are less likely to be consolidated or closed.

The Sharp Reduction in the Number of Banks That Has