A major financial institution, 'Apex Bank,' is declared insolvent due to significant losses on its loan portfolio. Financial regulators initiate a process to manage the bank's failure in an orderly manner. Based on the standard principles guiding such a process, which group is expected to bear the primary financial burden of the bank's collapse?

Bank Failure Response Analysis

According to the principle of loss allocation in a bank resolution, the primary objective is to use public funds to ensure that all parties who have invested in or lent money to a failing bank are fully protected from financial loss.

When a financial institution fails and undergoes an orderly resolution process, the resulting financial losses are distributed among various stakeholders according to a specific hierarchy. Arrange the following groups in the correct sequence, from the first to absorb losses to the last.

Rationale for Loss Allocation in Bank Failures