Banking

Bank Failure

Bank Failure

Bank Failure is the closing of an insolvent bank by a federal or express regulator. The comptroller of the currency has the power to close countrywide banks; banking commissioners inside the respective states shut state-chartered banks. Banks close when they are unable to meet their commitments to depositors among others. When a bank fails, the Federal First deposit Insurance Corporation (FDIC) covers the insured portion of a depositors equilibrium.