Part 9/11:
However, regional and smaller banks might face trouble—and that’s where the danger lies. Bank runs or sudden closures could occur if depositors lose confidence, especially if they hold more than the insured limit or if a bank suddenly faces a cascade of defaults.
Practical Tips and Precautions
Diversify your banking relationships: Don’t keep all deposits at one bank, particularly smaller or regional institutions.
Stay within FDIC limits: Insure yourself by splitting funds among multiple banks if you hold large sums.
Be cautious of real estate and loan exposures: If you own commercial property or have significant loans, stay informed about market conditions and refinancing deadlines.