A bank failure occurs when a regulatory agency, such as a state authority or the Office of the Comptroller of the Currency (OCC) , closes a bank because it can no longer meet its financial obligations to depositors and creditors. This typically happens when a bank becomes or lacks the liquidity to handle mass withdrawals, often referred to as a "bank run". Core Causes of Bank Failure
Failures are rarely the result of a single event but rather years of internal and external factors.
Bank Failure: An Evaluation of the Factors Contributing ... - OCC
