That’s because depositors aren’t withdrawing money to hide it under the mattress. They’re withdrawing money from smaller banks and moving it to the larger ones.
“They’re withdrawing money from smaller banks and moving it to the larger ones.”
It has been my experience that newer and larger banks tend to have the most problems.
About 13 years ago I got burned on Citi stock and my neighbor on BoA stock. Several relatively new banks in my Florida county got taken over.