A banking crisis occurs when there is a speculative attack on the exchange value of a currency.

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A banking crisis occurs when there is a loss of confidence in the banking system or when banks face widespread defaults on loans. A currency crisis occurs when there is a sudden and unexpected decline in the value of a currency due to factors like government policy, trade imbalances or financial speculation. While these two types of crises can be related, they are not the same thing.

A Banking Crisis Occurs When There Is a Speculative Attack