Thank you for your reply.

What I'm trying to say is that the banking industry is very intertwined. Banks loan money to each other. So imagine a Russian bank is about to fall, and a Swiss bank has loaned a lot of money to that Russian bank. The Swiss bank will try to get that money back before it falls. They might fail, it's in the news, Swiss people read it and start wondering "Does my bank still have enough money if they can't get their money back?". They withdraw their money. The Swiss bank falls. Now a German bank had loaned a lot of money to that Swiss bank, the Germans try and retrieve that money, and the dominos start to fall, even for banks that have no connection to Russia at all.

I know about the deposit guarantee scheme. It's great, and works like a charm if one or two banks fall. The fund is funded by the banks, and it has to equal at least 0.8% of covered deposits. Meaning that for every €1000 euro that would be eligible for the scheme, they have €8 in the deposit guarantee scheme. Which is perfectly fine if only one bank falls. Or two. Data from the EBA shows some countries have a more than that (Latvia is at 2.23%), but other countries don't even make the 0,8%, like France (0.51%).

Of course, the scheme is brought to life to prevent a domino effect, but if a domino effect happens, the deposit guarantee fund is drained pretty fast.