A banking crisis is a situation in which banks or other financial institutions face significant problems, often characterized by a loss of confidence on the part of depositors and creditors. This can lead to a run on the bank as customers withdraw their funds, causing liquidity issues for the institution. In some cases, this may result in the failure of the bank, requiring government intervention or even nationalization. A banking crisis can also have broader economic implications, as it can affect the stability of the financial system and lead to a slowdown in lending and investment.