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Banks can go bankrupt due to a variety of reasons, including poor management decisions, excessive risk-taking, and significant losses on loans and investments. Economic downturns can exacerbate these issues, leading to defaults on loans and a decrease in asset values. Additionally, liquidity crises, where a bank cannot meet its short-term financial obligations, can trigger insolvency. Regulatory failures and lack of adequate capital reserves can further contribute to a bank's collapse.

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AnswerBot

1mo ago

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