The system has stacked up layers that spread the risk. In a normal economy, one bank may fail, but a regional bank is backing it so it is no problem because the regional banks are dealing with a lot of local banks who can help absorb the loss. A region may be hit by a disaster, but the regional bank is supported by the federal banking system which is supported by all the regional banks. If the federal banking system runs short, they can draw on the World Monetary Fund. It is like an insurance policy. In simple terms, if you have 100 people paying into a policy, and they each pay $100 a month, in 10 months it builds a fund of $100,000. If someone has an accident, totaling $15,000, it is covered by the fund. It is no problem if several have accidents because they can all be covered. It is very unlikely that everyone is going to have an accident. Since people are constantly paying premiums, it is constantly replenishing money paid out in settlements. If there was a hurricane and it wiped out all the cars, the company would have to fold because they couldn’t cover the losses. That is where the banking failure gets scary.