What does the term bank failure mean

It occurs when the respective bank is unable to meet obligations from stakeholders such as customers’ cash demands and creditor’s payments. The Federal Deposit Insurance Corporation (FDIC) insures amounts of up to $250,000 per person hence they take over banks when bank failures occur (Pritchard, 2016). They treat the taken bank as federally owned while operating it and can even sell it to another stronger bank. How many banks failures occurred in the United States during the most recent complete calendar year? In 2017, there were a total of 8 bank failures (FDIC, 2017). How many banks failures occurred in the United States during 2016? In 2016, total bank failures were 5. Retrieved from Federal Deposit Insurance Corporation: https://www5. fdic. gov Pritchard, J. (2016, September 11). What Happens in Bank Failures? Retrieved from What Is a Bank Failure, and What Happens to Your Money?: https://www.