95% of the population of this island deal with the banking system one way or another. If Bank A goes under it takes with it all it's employees, the mortgage book, peoples savings, pensions etc. If Bank A has borrowed off Bank B then that too is at risk of losing money, and the whole cycle repeats.
Indirectly people have no confidence and are not spending their money incase they need it for other things, MFI, Rosebys, Pendragon & Woolworths have either gone under, been bought out or are on the brink, they too have employees who are also hoarding money.
How many 58 registration plates have you seen this month?