Generally, the failure of small banks

Question

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The failure of small banks generally causes less concern about the safety of the banking system than the failure of large banks for several reasons. Small banks tend to have a smaller customer base and therefore their failure may have a limited impact on the wider economy. Additionally, small banks usually have less complex operations, making it easier for regulators to resolve issues or liquidate the bank if necessary. Furthermore, large banks are often seen as too big to fail, meaning that the government may step in to prevent their failure, which could further erode confidence in the banking system.

Generally, the Failure of Small Banks