> smaller banks are subject to the same constraints as the biggest banks though they are not capable of causing a systemic crash. Contagion (https://en.wikiped

> smaller banks are subject to the same constraints as the biggest banks though they are not capable of causing a systemic crash. Contagion (https://en.wikipedia.org/wiki/Financial_contagion https://en.wikipedia.org/wiki/Financial_contagion) can still take place with a (literal) local bankruptcy depending on the exposure of larger institutions to that smaller firm's losses.