Prior to the banking crisis that began in 2008 bank failures had been a rare occurrence with only 32 banking failures between 2000 to 2007.
During 2008 the wheels began to fall off the financial system and bank failures increased dramatically as loan defaults soared.
As the banking crisis worsened bank failures reached a peak of 157 institutions during 2010. Since peaking in 2010 the number of bank failures has declined every year since as seen in the data below which tracks bank failures back to 2000.
Year |
Number of Failed Banks |
|
2000 |
7 |
|
2001 |
4 |
|
2002 |
11 |
|
2003 |
3 |
|
2004 |
4 |
|
2005 |
0 |
|
2006 |
0 |
|
2007 |
3 |
|
2008 |
25 |
|
2009 |
140 |
|
2010 |
157 |
|
2011 |
92 |
|
2012 |
51 |
|
2013 |
24 |
|
2014 |
18 |
2015 4
Total 543
Although bank failures have declined greatly since 2008 the number of failures still exceeds the levels seen prior to the financial crisis. In addition, the FDIC confidential Problem Bank List still has 291 banks on it.
If a significant number of these problem banks wind up failing, the number of banking failures may increase over the levels seen in the previous three years.
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