The first banks in Connecticut were established in Hartford, New Haven, Middletown, Bridgeport, Norwich, and New London between 1792 and 1805. By 1850, the state had 54 commercial and 15 savings banks. As of late 2002, Connecticut had 66 insured institutions. Assets of the state's insured banks amounted to $53 billion in 2002.
At the start of 1995 there were 59 (FDIC-insured) savings institutions, with combined assets of $38.8 billion. The Resolution Trust Corporation resolved eight Connecticut savings institutions by the end of 1995 at a cost of $191 million.
Banking operations are regulated by the state Department of Banking. The National Graam-Leach-Bliley Financial Modernization Act of 1999, which allowed the conglomeration of banking, securities, and insurance services, was badly received by the Connecticut Banking Commissioner. The over weighted savings sector in Connecticut discriminates against the movement of capital in securities markets.
Connecticut has a large percentage of thrifts and residential lenders. Two-thirds of insured institutions in the state are savings institutions. Residential real estate loans comprise 57% of the average loan portfolio in Connecticut. In 2001/02, there was an increase in consumer and commercial real estate loan delinquencies. As of the end of 2002, Connecticut had eight institutions under three years old, or 12% of all institutions.