When a bank is going bankrupt, it faces several additional losses beyond the immediate operational and financial losses. These include:

I.The discount accepted by the bank for selling its assets in a fire sale:In a fire sale, assets are sold quickly and often at a significantly reduced price, resulting in substantial losses.

II.The increased cost of funding liabilities in a financially distressed situation:As the bank's financial condition deteriorates, its cost of borrowing increases due to higher perceived risk, leading to increased expenses.

III.The reduction in the present value of future growth opportunities:Financial distress often means the bank cannot invest in future opportunities, significantly impacting its long-term profitability and growth potential.

IV.Loss of goodwill and intangible assets:The bank's reputation, brand value, and other intangible assets suffer significantly during bankruptcy, leading to additional losses.