How banks work

https://geographyfieldwork.com/HowBanksWork.htm 
Banks accept deposits and make loans and
make a profit from the difference in the
interest rates paid on deposits and charged
for loans. Banks work because of our trust.
We give a bank our money to keep it safe for
us, and then the bank lends it to someone
else in order to make money for itself. Banks
can legally lend far more money than they
have cash. Still, most of us have total trust in
the bank's ability to protect our money and
give it to us when we ask for it.
• Banks create money in the economy by making loans.
The amount of money that banks can lend is directly affected by the reserve requirement set
 by the Central Bank (in the UK, the Bank of England and the Federal Reserve Bank
in the US). The US Federal Reserve Bank reserve requirement for a large bank
is currently 10 percent of its total deposits. This amount can be held either in cash
in the bank's vaults or in the bank's reserve account with the Central Bank.

• To see how this affects the economy, think about it like this. When a bank gets a deposit of
€100, assuming a reserve requirement of 10 percent, the bank can then lend out
€90. That €90 goes back into the economy, purchasing goods or services, and usually ends u
p deposited in another bank. That bank can then lend out €81 of that €90 deposit,
and that €81 goes into the economy to purchase goods or services and ultimately is deposite
d into another bank that proceeds to lend out a percentage of it.
In this way, illustrated below, money grows and flows throughout the community in
a much greater amount than physically exists.

https://geographyfieldwork.com/HowBanksWork.htm 
Banking crisis 

• A banking crisis refers to a situation where a significant number of banks or financial institutions experience severe
financial difficulties, often leading to failures or government bailouts.
• The 7 biggest financial crises are:
• the Great Depression 1932;
• the Suez Crisis 1956;
• the International Debt Crisis 1982;
• the East Asian Economic Crisis 1997-2001;
• the Russian Economic Crisis 1992-97,
• the Latin American Debt Crisis in Mexico, Brazil and Argentina 1994-2002,
• and the Global Economic Recession 2007-09