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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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:
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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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