Is the burden of distress in the banking sector shared equally among households, or is it distributed unevenly? Following the global financial crisis, the economic consequences of severe disruptions to the banking sector and the unequal impact of recessions have become a key concern of macroeconomic policy. This article examines how temporary banking sector losses affect households differently according to their income levels. The analysis reveals that low-income households bear most of the burden, while high-income households tend to be less adversely affected. While a fewhigh-income individuals exposed to bank dividends may face severe losses, those who are able to quickly adjust their portfolios may be able to take advantage of low asset prices, earn high returns going forward, and overall benefit from distress in the financial sector.
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