Final answer:
E-banking has several disadvantages, including security risks, contribution to the digital divide, potential for systemic failures, and economic impacts during financial crises, exemplified by the 2008-2009 Great Recession.
Step-by-step explanation:
While e-banking offers convenience and efficiency in managing financial transactions, it also has disadvantages. One significant downside is the potential for security risks, such as the loss of privacy and the threat of cyber attacks that could lead to financial losses or data breaches. Additionally, e-banking can contribute to the digital divide, rendering those without technological access or skills at a disadvantage. The reliance on technology also raises concerns about system failures, where a technological malfunction can cause disruption to banking services. Moreover, the fiscal health of banks is critical; if banks suffer from stressed assets, they may restrict lending, which was clearly seen during the 2008-2009 Great Recession, causing economic turmoil for sectors reliant on credit. Lastly, the liquidity of funds in electronic form can be less immediate compared to cash, as withdrawing money may require access to an ATM or bank visit.