A series of bank scandals is sweeping through much of the developing and third worlds - Eastern and Central Europe in the forefront. Many things - almost everything. It is mainly a crisis of trust and adverse psychology. Financial experts know that Markets work on expectations and evaluations, fears and hopes. The fuel of the financial markets is emotional - not rational.
Banks operate through credit multipliers.
This is called a reserve and is intended to serve as an insurance policy. The commercial banks hold their reserves with the Central Bank or with a third party institution, explicitly and exclusively set up for this purpose. The Borrower pays Bank A interest on the loan that he receives. This process is called credit multiplication. The Western Credit multiplier is 9.