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HELENA - Banks from Billings to Bozeman to Helena have been hit hard by the declining economy and banking regulators have stepped in, in many of these cases to ensure Montana's money is safe.

"What we have seen in Montana is not unlike what has been occurring nationally. The economy nationally has been stressed and it has also occurred in Montana," said Annie Goodwin, Division of Banking Commissioner.

Banking regulators have a series of tools in which they use to monitor banking practices and over the last two years the State Division of Banking has seen an increase in enforcement actions taken.

"Our institutions and our banks are not isolated from the national economy nor from what is occurring in Montana's economy. These orders are in fact an action plan to allow the banks to improve and to strengthen." Goodwin says.

So far, at least six banks in Montana are currently undergoing disciplinary action: American Bank in Bozeman, the Bank of Bozeman, Ravalli County Bank in Hamilton, Lake County Bank in St. Ignatius, Beartooth Bank in Billings and Mountain West Bank which has offices across the state.

Goodwin says regulators step in to address the bank's capital condition, credit quality, and also loan loss provisions. She explained that due to the drop in the real estate market these banks have over lent, or lent to borrowers who have defaulted.

Goodwin says it's the regulators job to enforce safe banking practices, and by issuing enforcement orders they hope to bring the banks back into compliance.

"There is no need to panic, there is the FDIC insurance that exists for all customers that provide deposits of money in our FDIC insured banks."

Goodwin added that regulators give the banks varying time frames to turn their practices around and if the bank complies, then the enforcement actions are terminated. But, if the institution does not comply, then it could result in further disciplinary action and even closure.

Goodwin did give an assurance that the regulatory measures are in place to protect consumers and their money.