Submitted by pranshum t3_11u8mhn in dataisbeautiful
Westcork1916 t1_jctyauo wrote
Reply to comment by vlsdo in [OC] Bank failures come in waves by pranshum
This is a great analogy. What we saw in the past three waves was a handful of failures that triggered a "flight to safety". Customers started moving their money to safer places; i.e. larger banks or liquid assets. That left smaller banks without the required capital reserves, which led to more failures and more withdrawals.
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