About bank failures Governments try to reduce the risk of domestic bank failures by carrying out a number of regulatory measures,as serious consequences are often following the failures. Though,without government's regulations,banks with sound management have their own ways to avoid such risks. However,the owner of a bank is not the sole victim of bank failures.As a result,some banks might take a risk,which is higher than of social-optimal level,for their own benefit. What's more,when rumors about financial crisis begin to spread,bank failures could happen to those who have been prudent in investment tactics.