State banks are in disarray (8)
I believe the answer is:
nebraska
'state' is the definition.
(I know that Nebraska is a state)
'banks are in disarray' is the wordplay.
'in disarray' indicates anagramming the letters.
'banks'+'are'='banksare'
'banksare' is an anagram of 'NEBRASKA'.
(Other definitions for nebraska that I've seen before include "American state, capital Lincoln" , "Cornhusker State" , "US Great Plains state" , "State of central US" , "State of central USA" .)