Illinois regulators have closed Chicago's Metropolitan Capital Bank & Trust due to unsafe conditions and weak capital, marking the first bank failure of 2026. The Federal Deposit Insurance Corporation (FDIC) has been appointed as receiver, with First Independence Bank of Detroit assuming all deposits and most assets. This transition ensures that no depositor funds were lost, maintaining customer access to their accounts. The closure, announced on January 30, 2026, underscores regulatory diligence in protecting depositors and maintaining financial stability. The FDIC estimates a $19.7 million cost to the Deposit Insurance Fund. This action highlights the commitment of regulatory bodies like the Illinois Department of Financial and Professional Regulation (IDFPR) to safeguard the banking system, with expectations of increased scrutiny on banking practices to prevent future failures.