Bank failures rises to 41 in United States

In March alone, 19 banks have been shut down. According to the Federal Deposit Insurance Corporation (FDIC), which insures deposits at over 8,000 banks, four entities were closed down by the authorities on March 26.

The failure of the four — McIntosh Commercial Bank, Unity National Bank, Desert Hills Bank and Key West Bank — would cost the Federal agency as much as $320 million. Despite the national economy returning into the growth path, many of the small and medium banks continue to remain shaky due to high unemployment levels.

With jobless rate hovering over nine per cent, these entities are also witnessing increased defaults. Last month, seven banks failed while the count stood at 15 in January. A staggering 195 banks have gone bust since the bankruptcy of Lehman Brothers in September 2008.