Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Why are there many small banks and more banks in the U.S.?
I can't find a citation, but from memory (EDIT: and reading the newspapers at the time it happened): up until around 1980, banks couldn't cross state borders.  In my state, at least, they were also very local, only staying within one county. This was to enforce "localness", the thought being that local bankers would know local people and the local situation better than far away people who only see numbers and paperwork.