The question often comes up of what will happen to money in a bank if the bank closes. Typically, there’s no cause for concern when a bank closes, as your money should be safe. When money is deposited in banks, it’s protected in several different ways.
First, money deposited in banks is protected by the government’s bank auditing and examination laws. Second, when banks loan money, it’s not always the bank’s own money. Finally, money in certain bank accounts is protected through FDIC insurance.