They've bought up all the banks around you. As of June 30, there were 9,895 banking institutions, down from a high of 14,496 in 1984, according to Veribanc Inc., a bank rating service in Boston. Some analysts believe the number will fall to as low as 1,000 institutions, said Veribanc analyst Warren Heller. The consolidation also means loss of local control. Thomas fears this trend will lead to higher pricing, less local lending and fewer charitable contributions by the acquiring bank.
Consumer groups contend that charges at merged banks are already higher.
And they increased existing fees for minor infractions, like going over a charge limit or being one day late on a payment. Robert K. Heady, an analyst at Bank Rate Monitor, said newly merged banks often pay less on deposits and charge more for loans, a trend many customers don't even notice. No one makes comparisons over time. When a takeover occurs, it's a silent, slow, creeping movement. Customers do, however, quickly notice changes in service.