Verkkoa (systemic) banking crisis occurs when many banks in a country are in serious solvency or liquidity problems at the same time—either because there are all hit by. Verkkothe crisis in its current state is exerting pressure on the banking sector from four directions: Funding pressure, access to equity capital markets, regulation, and. Verkkoa major scheme to prop up the us banking system is ending, while a second may be winding down. Some economic commentators fear another banking. Verkkothis working paper explains the different options available to banks and governments considering using a ‘bad bank’ mechanism to contain bad assets.