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 ?
2008b), 'The use of binary recursive trees for banking crisis prediction', Brunel University Department of Economics and Finance Working Paper, Brunel University.
5) Analogous to a statistical study in epidemiology, the absence of deposit insurance is the exposure status or risk factor and the existence of banking crisis is the disease status in this study.
The report says that the number of graduates in the UK has risen by almost a half over the past 10 years, which when combined with the economic impact of the banking crisis has resulted in more and more talented young people like Lisa struggling to find work in their specialist fields.
Mr Kenny and Eamon Gilmore both strongly criticised the Fianna Fail leader for the Government's handling of the banking crisis.
The Crosby-born Archbishop of Westminster, the Most Rev Vincent Nichols, said: "It is now widely acknowledged that underlying the banking crisis was the gradual erosion of the duty of service to society.
Bruton also hit out at the decision the decision of the Financial Regulator to hire individuals from companies which were affected by the banking crisis.
VISIT PLEDGE: Meeting to discuss the banking crisis are (from left) Yorkshire and Humberside minister Rosie Winterton, Chris McCafferty, Gordon Brown, Linda Riordan and assistant Yorkshire and Humberside minister Jeff Ennis (S)
Finally, real output growth falls below trend about eight months before the peak of the banking crisis, while stock prices peak at about the same time.
Publicly sponsored construction, on the other hand, remained the most stable sector, largely unaffected by either recession or banking crisis.
The Banco Central de la Republica Dominicana absorbed most of the increase in debt since 2002 due to domestic issuance of securities to address the banking crisis and increased IMF borrowing for balance of payment support.
Global Banking News-April 27, 2015--Commercial banks recovering from retail banking crisis
Mr Miliband's call came ahead of today's publication of the Independent Commission on Banking's final report which will make recommendations on how to prevent another banking crisis.

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