Crossword Genius

State in which banks are corrupted (8)

Ross

I believe the answer is:

nebraska

'state' is the definition.
(Nebraska is an example)

'banks are corrupted' is the wordplay.
'corrupted' is an anagram indicator.
'banks'+'are'='banksare'
'banksare' with letters rearranged gives 'NEBRASKA'.

'in which' is the link.

(Other definitions for nebraska that I've seen before include "Mid-western US state" , "American state, capital Lincoln" , "US Midwest state" , "State N. of Kansas" , "State of central USA" .)

I've seen this clue in The Telegraph.
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