How can asymmetric information problems lead to a bank panic?

Describe two ways in which financial intermediaries help lower transaction costs in an economy.
How can asymmetric information problems lead to a bank panic?
How does the free-rider problem aggravate adverse selection problems in financial markets?
How can the existence of asymmetric information provide a rationale for government regulation of financial markets?
Raul lives in Badostan, a country with a relatively inefficient legal and financial system. When he applied for a mortgage, he found that banks usually required collateral for up to 400% of the amount of the loan. Explain why banks might require that much collateral in such a financial system. Comment on the consequences of such a system for economic growth.
The bank you own has the following balance sheet:

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