Yes. Banks are required to have a certain amount of their balance sheet as equity. If that gets too low, they have to increase it. That means selling more sh

Yes. Banks are required to have a certain amount of their balance sheet as equity. If that gets too low, they have to increase it. That means selling more shares. Only if your price is already very low, you cannot sell more shares because no one will buy. So then you cannot get your capital ratio right, and the FED (or other institution steps in to take over). This is not a problem for day-day operations, but it can rapidly become a problem week-week...