Hundreds of banks failed during the Great Recession period, with 157 in 2010 alone. Given the current economic stress, many banks will fail for sure.
If your bank fails, you may lose money indirectly, even with FDIC insurance, and will surely suffer the headache of disruptions:
Check the FDIC webpage for details. https://www.fdic.gov/consumers/banking/facts/payment.html
Using different machine learning technologies, we predict the likelihood of bank failures through an intuitive rating system of 1 to 5, with 1 being the worst and 5 the best. Our ratings cover all the FDIC guaranteed financial institutions. The purpose is to help you identify weak financial institutions so you can avoid the headache of dealing with bank closings in the future.
Using data up to Q4 2019, only 5 banks were assigned the worst rating of 1. As of today, two of them have failed (Q1 2020 data is not available yet). For banks with the worst rating, we recommend depositors to move away from them as soon as possible.