Bank run

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Bank run (bank panic)

A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the chartering agency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business.

Bank Run

An event in which many account holders at a bank withdraw all of their funds at the same time because they do not believe the bank is solvent. Ironically, the pressure of a bank run itself can cause the bank to become insolvent. In the United States, bank runs were fairly common before the creation of the FDIC, which insures bank deposits up to a certain amount. See also: Panic.
References in periodicals archive ?
Vassilev, who is in neighbouring Serbia and awaiting a court decision on whether to extradite him, has denied any wrongdoing and said the bank run was a plot hatched by his competitors in collusion with some state officials.
Could all this end up with bank runs that bring down the euro itself?
As a result of the blow-back and fears of bank runs, Greek lawmakers revised the plan so it would spare savers with less than a[logical not]20,000.
Furthermore, in the environment considered here, a bank run is driven by the information about a bank's portfolio return.
Let us consider the latest bank run in Hong Kong as an example to illustrate the above ideas.
Chancellor Alistair Darling, who was forced to step in to guarantee savers' deposits to end the bank run, will have the final say over any rescue plans for the group.
In a scathing attack on Dr Ridley and his role in the crisis, Tory MP Michael Fallon said: "You are the chairman of the bank that ran out of money, that caused the first bank run in this country for 150 years.
A bank run occurs when depositors believe that their bank will be unable to honor all of its deposit liabilities; depositors rush to the bank and attempt to withdraw as much of their money as they can, in order to avoid losing all or most of it.
30 /PRNewswire/ -- Thousands of Detroit Zoo supporters will lace up their running shoes and head over to the Zoo on Saturday, September 10, 2005, for the ninth-annual LaSalle Bank Run Wild for the Detroit Zoo (Standard Federal Bank will become LaSalle Bank on September 12).
When radiant heaters in an oven bank run at the same temperature they will always overheat the center of the sheet and under-heat the periphery.
Moreover, supervisors can't toot their own horns to gather public support because simply mentioning a success might cause a bank run.
They found the needle in containers recovered from a plastic bottle bank run by the Scope charity at the Tesco store in Barry.