Definitions for bank run
bank run

Princeton's WordNetRate this definition:0.0 / 0 votes

1. bank runnoun

   the concerted action of depositors who try to withdraw their money from a bank because they think it will fail

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1. bank run

   A bank run is a financial situation where a large number of customers simultaneously withdraw their deposits from a bank due to concerns about the bank's solvency. As banks typically keep only a fraction of deposits as cash reserves, a large number of withdrawals could potentially cause the bank to run out of cash and fail.

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1. Bank run

   A bank run occurs in a fractional reserve banking system when a large number of customers withdraw their deposits from a financial institution at the same time and either demand cash or transfer those funds into government bonds or precious metals or a safer institution because they believe that the financial institution is, or might become, insolvent. As a bank run progresses, it generates its own momentum, in a kind of self-fulfilling prophecy – as more people withdraw their deposits, the likelihood of default increases, thus triggering further withdrawals. This can destabilize the bank to the point where it runs out of cash and thus faces sudden bankruptcy. A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as people suddenly try to convert their threatened deposits into cash or try to get out of their domestic banking system altogether. A systemic banking crisis is one where all or almost all of the banking capital in a country is wiped out. The resulting chain of bankruptcies can cause a long economic recession as domestic businesses and consumers are starved of capital as the domestic banking system shuts down. Much of the Great Depression's economic damage was caused directly by bank runs. The cost of cleaning up a systemic banking crisis can be huge, with fiscal costs averaging 13% of GDP and economic output losses averaging 20% of GDP for important crises from 1970 to 2007.

Matched Categories

1. • Bank Withdrawal

How to pronounce bank run?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say bank run in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of bank run in Chaldean Numerology is: 5

2. Pythagorean Numerology

   The numerical value of bank run in Pythagorean Numerology is: 9

Examples of bank run in a Sentence

1. Frank Xie:

   Many people lost their lifetime savings because of this and [ if ] more incidences like this takes place, and [ if ] a bank run is met with a government crackdown, social unrest will be the only end result.

2. Anthilia Capital Sersale:

   I wouldn't call it a bank run but definitely outflows.

3. Sam Woods:

   A striking feature of the Silicon Valley Bank run, though not so much of the Credit Suisse one, was the speed with which it took place, i do think we have to look back at these outflow rates … and ask what we have learned.

4. Frank Xie:

   The central government regulators seem to be incapable of enforcing those regulations aimed at preventing this kind of bank run from occurring.