Why is the failure of a large bank more detrimental to the economy than the failure of a large steel manufacturer?

Question

Quizplus · Accepted Answer

The failure of a large bank reduces credit availability throughout the economy, which can have a ripple effect on businesses and households. Banks play a crucial role in the economy by providing loans and credit, and their failure can lead to a credit crunch or financial crisis. In contrast, the failure of a large steel manufacturer may have a more limited impact on the economy, as the company's assets can be sold or reallocated to other firms. Therefore, the failure of a large bank is generally considered more detrimental to the economy than the failure of a large steel manufacturer.

Why Is the Failure of a Large Bank More Detrimental