Question

Are bank failures a sign of a relatively healthy industry?

Answer 1

No bank failures is not a sign of relatively healthy industry, because failure of banks means that financial health of the banks which means more losses of banks. High rate of non performing assets leads to bank failure and this has a effect on the financial health of other banks and financial institutions so lead to complete banking industry into financial and credit crisis. so we can say that failure of banks is not good for the industry as well as to the economy.