The expansion of branches of banks in most American towns has become so pandemic that it is difficult not to note the dominance of this type of business on any street corner in your city. In several cases, a busy crossing which could be used for retail operations like junk food cafes, cleaners, gas stations and fast stop stores has been taken over by banks.

In a few cases you may see 3 of the 4 corners of a popular junction in the city occupied by different bank branches. It makes you wonder, just how many banks will we need in the town and why are the banking establishments spending so much cash to put branches in just about each location which has open space? It's a business trend that gets your attention and it makes you wonder what's driving this bank explosion. Of course, in several cases there aren't more shoppers for those banks. You've got to wonder how banks can cost make a case for such growth when the expansion of bank branches isn't even in step with population growth in a stated community. The phenomenon has become more extreme in the last 10 years than previously.

The guidelines for how many branches a bank can own and where they can open them have changed noticeably in the decade. Now banks can open branches within food store stores and at a larger density than previously. And this has set off the expansion war of branch banking that we see going on all over city. Together with a releasing of the branch banking laws, commercial banks can offer many more services than ever. While we think about banks apropos checking and deposit accounts only if you walk into the bank, you'll be buried with offers for a massive spread of fiscal services including sorts of investment services and various kinds of credit agreements. And these services are gigantic money earners for your local banker. But using checking as a loss leader, banks can capture your business to supply credit services and investment autos that yield them far higher returns on the utilization of your funds. Further, the charges that may be asked for overdraft accounts and other fee based services are a pure profit mechanism for banks. Each new buyer a bank lands takes income out of competitor's banks. And if they can capture your banking business, the cash you store in your accounts is available for loans and interest they can realize by employing your cash even though it is in their care. So they need to be plain to reassure you think about them first when it is time to open a new account. This trend isn't certain to change anytime soon.

The competitors in the banking industry is unfriendly and financiers are assertive entrepreneurs. So we should be expecting them to work energetically to capture the customers business and make themselves available to buyers to rob your business away from competing banks. And while it could be bothering to see each street corner full of bank branches, its part of the market system that makes our economy robust.