But it's not. It is the government's role to step in to avoid the collapse of one sector or another of the economy. As for mom and pop banks, I may be wrong but I think these are specific to the US. Other modern countries only have a handful of banks under tight regulations, if not outright owned in part or whole by the state, for good or bad. Abroad, bank failures are a result of state failures. In America they are the result of lose regulations, greed and scams.
The SVB collapse is now clearly understood (low interest long term gov bonds vs. short term higher interest rates tied to rapid interest rate increases to stem inflation). Multiple layers of reasons for its failure will come out from politicians of all persuasions and so called experts who predicted this that and everything else. In hindsight it seems pretty obvious why this bank would collapse and even forever wrong Seeking Alpha had it figured out back in Dec. last year. But as far as I know there will be no taxpayers money to bail out the bank's shareholders. Regulators will make depositors whole (93% of the bank's deposits).
/cdn.vox-cdn.com/uploads/chorus_asset/file/6438793/this-is-fine.jpg)