You are conflating two unrelated failure modes: 1. A fraudster obtains your credentials and steals money from your bank account: The bank reverses the entire t

You are conflating two unrelated failure modes: 1. A fraudster obtains your credentials and steals money from your bank account: The bank reverses the entire transaction and makes you whole. You get your whole money back, no matter the amount. 2. The bank goes out of business: Worst case scenario, the bank has no assets, the government reimburses you up to 100k CAD/100k EUR/250k USD depending on the country the bank is located in. A lot of times, bankruptcies are due to liquidity issues, not insolvency, so you would get back most of your money, even above the caps here, eventually. Also, because the government is not just the insurer, but also the regulator, it has gotten much better at avoiding bankruptcy and this does not happen often these days (at least in Canada). I am not sure what failure mode you are concerned about: one where fraudsters steal so much money that the bank goes under, like tens or hundreds of billions of dollars? And the transactions are somehow irreversible?