A bank in The Woodlands, Texas, was closed by the FDIC on Friday, marking the 24th such bank to be shut down by federal regulators this year. It is a sign of how much progress the banking sector has made that those 24 closed banks are less than half of what we had last year.
Bank closures were a massive problem as recently as 2010, when there were 157 financial institutions shut down by the government. If no more banks close this year, 2013 will mark the fewest shut-downs since 2007, when the FDIC shut down just three banks.
Even 24 closed banks is a lot for more normal times, though. In both 2005 and 2006, the FDIC didn’t close down any banks at all.
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