leverage. excess leverage is at the center of all banking crises, by definition.
the financial crisis was primarily caused by deregulation in the financial industry. that permitted banks to engage in hedge fund trading with derivatives. banks then demanded more mortgages to support the profitable sale of these derivatives. that created the financial crisis that led to the great recession.
the answer is: it prevent people from keeping their cash out circulation
after collecting the money from the saver, banks will provide loans to other business who needs a capital injection and put an interest rates from the total loan. this is the main way banks obtain their profit.
this means that the more cash kept out of circulation , the more profit the banks can potentially get.
because of this, they offers various incentives for the saver to kept their money in the banks rather than using it somewhere else through interest, deposit insurance, maximum withdrawal, etc)
percetion is how someone sees themself or someone else. what you perceive tends to align quite well with what actually is. perception controls how a person reacts and acts towards situations, how they view themself and how reality is.