The regulator has closed the shutters of four more banks in states of Georgia, Florida and Arizona. With this, the total number of lenders that have been closed down during this year has reached 41.

The trend of the closing down has not stopped or decreased because of the fact that the small lenders have been pressurized because of the falling liquidity and also bad loans which have been tied to commercial real estate.

Four banks which were seized had a total asset base of $1.24 billion and a deposit of $1.1 billion. This data was given by the Federal Deposit Insurance Corp. (FDIC)

Till now, FDIC has seized over 181 lenders.

Market experts informed that this trend will continue since there are no ways that the smaller lenders can access capital. The other reason is that the lenders have majority of their lending related to real estate.

The closings are going top cost FDIC $320.3 million from its deposit insurance fund. The losses will be shared by FDIC and four other banks that have agreed to acquire the lenders.

This is the first time in last 17 years that the lenders are collapsing at this rate.