February 21, 2024


Poor management and oversight often trigger bank failures and can outweigh macro factors as causation or aggravating conditions. Poor management and poor supervision are closely linked. Regardless of the macro environment, when regulation is lax, good bankers can turn bad in a behavioral process that typically goes through four sequential stages.

Stage One: Incompetence

While there may be other causes, current losses and undercapitalization or insolvency