Bank failures occur when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities.
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Bank Run: A situation in which many customers withdraw their money from a bank simultaneously, fearing that the institution will become insolvent.
FDIC (Federal Deposit Insurance Corporation): A U.S. government corporation providing deposit insurance guaranteeing the safety of depositor's accounts in member banks up to $250,000 per account.
Insolvency: The state of being unable to pay debts owed.