In the event of a bank failure, depositors may lose some or all of their savings, and other creditors may also suffer losses. The failure of a large or well-connected bank can also have broader implications for the financial system and the economy, potentially leading to a loss of confidence in the banking sector and even causing a financial crisis.

To mitigate the impact of bank failures, many countries have deposit insurance schemes in place, which protect depositors' savings up to a certain limit in the event of a bank failure. In addition, regulators may intervene to restructure or resolve the failed bank in order to minimize the negative impact on the financial system and the broader economy.

There have been many instances of bank failures throughout history, including the following:

1. The Panic of 1907 - The failure of the Knickerbocker Trust Company in New York triggered a financial crisis that led to the failure of many other banks.
2. The Great Depression - The failure of many banks in the 1930s was a key factor in the prolonged economic downturn of the Great Depression.
3. Savings and Loan Crisis of the 1980s - The failure of many savings and loan institutions in the United States was a major contributor to the financial crisis of the late 1980s.
4. Bank failures during the Global Financial Crisis - The failure of many large banks during the Global Financial Crisis of 2007-2008 had a major impact on the global economy and led to government interventions to stabilize the financial system.
5. Iceland's banking crisis in 2008 - The collapse of Iceland's three largest banks in 2008 was a significant event in the Global Financial Crisis and had major consequences for the Icelandic economy.

These examples show that bank failures can have serious consequences for the financial system and the broader economy, and highlights the importance of effective regulation and oversight to minimize the risk of bank failures.