Under normal circumstances, banks will not fail. If a bank goes bankrupt, there will often be some serious situations. If the bank's loans are expected to be issued in large quantities, it will lead to the bank's lack of money to obtain loans from others, and it will also trigger a wave of cash withdrawal. Once there is a cash flow, the bank is not far from bankruptcy. If a bank commits a particularly serious violation of laws and regulations, it is likely to be directly ordered to close by the state. Or some private banks have no strength and scale, so no one saves money, and it may go bankrupt.

One. Large overdue

For those large banks, it is basically difficult for them to fail. If all fail, it is basically time for a financial crisis. Just like the subprime mortgage crisis in the United States in 2008, a large number of people borrowed money to buy a house, but later, because of the decline in house prices, many people did not pay back the money directly. If the money lent by the bank can't be recovered, then the bank will definitely go bankrupt. Not only can the lent money not be recovered, but it will also cause people who save money here to want their money back.

Two. illegal act

There are some small banks, and they may do some illegal acts to make profits. If any bank commits a particularly serious illegal act, it is likely to be directly ordered to close by the state. If it's just some common minor violations, then punishment measures will usually be taken to close it down.

No one saves money

Some people will build their own banks, but few of them will save money. If the bank says that no one saves money, then naturally there is no money to lend. After a long time, they have no money to operate and will naturally go bankrupt.

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