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Q: Do you think that there is a connection between the demise of the local bank and the banking crisis? If so, what are the implications for the future?
A: Yes there is a big connection between the demise of the local bank and the banking crisis. Local banks tends to that occurs when many banks suffer runs at the same time, as a cascading failure. [ In a systemic banking crisis, all or almost all of the banking capital in a country is wiped out; this can result when regulators ignore systemic risks and spillover effects - CAUSING BANKING CRISIS.
For future only stabled and reliable banks can survive and it can cost too much to consumers/customers ]
Expert answered|ephraimzRN|Points 1750|
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Asked 2/9/2012 5:19:26 PM
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