Overbank

Alright kiddo, have you ever had too much of your favorite candy and your tummy started to hurt? That's kind of like what overbanking means for a bank.

A bank is a place where people put their money when they're not using it, and then the bank lends it out to other people who need it for different things like buying a car or a house or starting a business.

But sometimes, a bank might take in too much money and start lending out too much money. This is called overbanking. Just like eating too much candy, it might feel good at first, but it can be bad for the bank in the long run.

When a bank overbanks, it can put itself at risk by lending out too much money that might not get paid back. This is bad for the bank because then they might not have enough money to give back to the people who put their money in the bank.

So it's important for banks to make sure they don't overbank and lend out too much money. Just like it's important for you to not eat too much candy!