The Bank of Illinois was the name of three state-owned banks operated by the State of Illinois between 1819 and 1842. Controversial from the start, the state banks were the focus of political conflict for their entire existence. The banks struggled with depreciation, their notes consistently losing value for years. The Panic of 1837 rendered most state banknotes nearly worthless, and the Bank of Illinois was liquidated in 1842. It was not rechartered, its functions instead passing to a new generation of privately owned banks.