Banks wch are collapsed due to any financial reason/huge lending/non kyc compliance
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Banks usually fail or collapse when there are numerous number of bank runs, that is huge amount of people are withdrawing money as they do not seem to trust the bank anymore.
Numerous reasons contribute to a bank failure loan losses they can occur when the credit standards are low.
Funding problems is when a bank has issues in refinancing its debt or repaying it, this is mainly due to the not so promising overall market conditions.
Non banking sectors such as real estate and leasing companies suffer from huge losses.
Therefore many reasons combined contribute to the failure of the bank including both financial reasons and lending.
Numerous reasons contribute to a bank failure loan losses they can occur when the credit standards are low.
Funding problems is when a bank has issues in refinancing its debt or repaying it, this is mainly due to the not so promising overall market conditions.
Non banking sectors such as real estate and leasing companies suffer from huge losses.
Therefore many reasons combined contribute to the failure of the bank including both financial reasons and lending.
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