But there would be a nationwide
bank run if they reopened the banks without strict limits on cash withdrawals and transfers overseas.
Fear of a
bank run has led the government, which is led by Nicos Anastasiades, to keep banks closed until at least Thursday.
1) The view on fundamental-based
bank runs argues that
bank runs occur when depositors receive negative information about their bank's portfolio returns or about an aggregate liquidity shock.
On the surface, these measures of higher or full deposit insurance coverage have succeeded in containing
bank runs, at least temporarily.
By effectively eliminating
bank runs, deposit insurance has the unintended effect of reducing market discipline and increasing incentives for banks to take on risk.
Some scholars have recently argued that the multiple-equilibria-plus-sunspots explanation of
bank runs is inconsistent with available evidence showing that
bank runs have historically been strongly correlated with deteriorating economic fundamentals (see Gorton [1988]; Allen and Gale [1998]; and Schumacher [2000]).
The combination of deposit insurance and a central bank providing discount window credit has made the contagion of
bank runs that often characterized the nineteenth century and the first third of the twentieth century an anachronism.
This chapter wrestles with one of the gigantic theoretical issues in banking; the need for government provided deposit insurance to prevent
bank runs.
The
bank runs all its financial applications over Citrix but remote access still proved to be a challenge with degraded response times.
At present, the
Bank runs around 5,330 branches across India.
Global Banking News-July 2, 2014--Bulgarian authorities say
bank runs have been halted
BRUSSELS: The European Central Bank (ECB) yesterday stepped up pressure for a joint guarantee for bank deposits across the euro zone, saying Europe needed new tools to fight
bank runs as the bloc's debt crisis drives investors to flee risk.
