A foreign debt crisis refers to a loss of confidence in the banking system that leads to a run on banks.

Name: A foreign debt crisis refers to a loss of confidence in the banking system that leads to a run on banks.
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While a foreign debt crisis can certainly be a factor in a banking system's instability, it specifically refers to a situation where a country is unable to repay its foreign debt, rather than a run on banks.

A Foreign Debt Crisis Refers to a Loss of Confidence