What does bank run mean?

Definitions for bank run
bank run

This dictionary definitions page includes all the possible meanings, example usage and translations of the word bank run.

Princeton's WordNet

  1. bank runnoun

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


  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.


  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.

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How to pronounce bank run?

How to say bank run in sign language?


  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:

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

  2. 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.

  3. Anthilia Capital Sersale:

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

  4. 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.


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"bank run." Definitions.net. STANDS4 LLC, 2024. Web. 23 Jun 2024. <https://www.definitions.net/definition/bank+run>.

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