With this financial structure, the margins for error are fine and, in an uncertain and competitive marketplace, there are always risks. Indeed, banks on occasion do get into trouble, and probably more often than is commonly thought. Recently in Australia, there have been some high profile incidents at the NAB.
In the late 1980s and early 1990s, both Australia and New Zealand had much more serious incidents to deal with. There was the failure of state banks and the parlous condition of Westpac in Australia, and similar problems at the BNZ and DFC in New Zealand.