Regarding http://www.straightdope.com/mailbag/mmultiplyingbanks.htm Why are banks opening so many branch offices?
In replying to Andy Ville’s question about the increase in bank branches, Gfactor explained that the increase began after WWII and continues to this day. Unless Andy is 90, I don’t think he’s asking about a 60 year trend. I can’t speak for Andy, but in my neighborhood in Brooklyn and most of the neighborhoods around it, bank branches are sprouting up like mushrooms, with new branches every two blocks or so. There can’t possibly be a demand for so many banks. It could be deregulation in NY (although I haven’t heard about any), but my guess is that they are competing for the new money flowing into the borough. The cost of housing has skyrocketed throughout Brooklyn and the people moving into these homes are very well-off. Banks are competing for this new money. Once incomes in Brooklyn level off, the growth of banks will taper off and and the losers will shut down their branches. That’s my theory, at least.