bank failure
Institution goes under
Bank failure is the collapse of a financial institution when it can no longer meet its obligations to depositors and creditors.
A bank fails when its liabilities exceed its assets, often triggered by loan defaults, bank runs, or poor management.
Regulators typically close failed banks and transfer deposits to healthier institutions: The bank failure wiped out shareholders but depositors were protected by insurance.
- collapseSudden structural failure
- insolvencyInability to pay debts
- FDICFederal deposit guarantor
- bailoutEmergency aid preventing bankruptcy
- depositorsThose who bank funds
panic · run · crash · recession · credit crunch · liquidation · shutdown · losses · contagion · domino effect · crisis · default · bankruptcy · regulators · stress test · closure · savings · loans
- economic crisisrecession, depression, collapse, downturn, contraction
- US bankingFDIC, Fed, Federal Reserve, Glass-Steagall, savings and loan
- banking termsaccount number, routing number, balance, FDIC, credit check
- Depression EraGreat Depression, Hooverville, breadline, dust storms, soup kitchen
- economic downturnsrecession, deflation, economic collapse, market decline, depression
- financial crisesfinancial collapse, economic collapse, market crash, credit crunch, market panic