Why Do Banks Shut Down?

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Why Do Banks Shut Down?

Banks are very important in life especially in the modern time we live in today without them there would be no safe place to keep your money. Straight to the point in the year 2008 a lot of banks shut down because of the lack of money they had as you know this was also the time of the financial crisis, this also ties up to why the banks shut down in the first place. I discovered that the banks were not paying much attention to who they were loaning money too and because of that that, the people they loaned money to did not have enough cash to pay back and that seriosuly affected the banks. Now the banks could not loan anymore money and could not pay back the people they owed! As time went people did not want to keep money in the bank and therefore they had to close down.

A lot has changed since 2008 and banks and more alertive and and know how to handle their situations!

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