Bank run

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Related to Banking crisis: Financial crisis

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 ?
(20) In their baseline specification, Cerra and Saxena consider the output response to a banking crisis using the Least Squares Dummy Variable (LSDV) estimator for the following model with their unbalanced panel of countries:
Instead of mobilizing a militia, FDR had mobilized a group of policy specialists, many of them Hoover holdovers, a few days before to produce a workable plan to solve the banking crisis. While the economic elite met and urged a more authoritarian approach, this smaller group of men, working round the clock and sleeping on couches, emerged with a three-pronged plan to save the nation's banking system.
The US$87 billion estimate, which is 24 per cent higher than the Indonesian government's own estimates, places the cost of the banking crisis as worse than the current crises of Thailand, South Korea and Malaysia.
In South Korea, nonperforming loans are already 25 to 30% of the banks' total assets, and the economic cost of the country's banking crisis could equal 20 to 25% of GDP, it said.
Global Banking News-November 19, 2018--Former Ghana president criticises handling of nation's banking crisis
M2 EQUITYBITES-November 19, 2018--Former Ghana president criticises handling of nation's banking crisis
BANKING AND CREDIT NEWS-November 19, 2018--Former Ghana president criticises handling of nation's banking crisis
New Delhi [India], Oct 23 ( ANI ): In the wake of the crisis ensuing in the Infrastructure Leasing & Financial Services Limited (IL&FS), Comptroller and Auditor General of India (CAG) Rajiv Mehrishi opined that that absence of a bond market is the reason behind the current banking crisis in India.
AFTER the turmoil of the banking crisis in March and fears about foreigners flocking from the island, those in the industry in Paphos say more have arrived in the last few months than have left.
Summary: Battered by high unemployment and a banking crisis, Spain remains stuck in recession in the final quarter of 2012, the central bank said on Friday.
Examples include the resolution of the Latin American debt crisis at the start of the 1980s, the resolution of the international banking crisis in the late 1980s, the resolution of the US savings & loan crisis, the resolution of the Scandinavian debt and banking crisis, and the resolution of the Asian debt crisis.

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