bank run

bank run
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. Bloomberg Financial Dictionary

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bank run bank run run2

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bank run UK US noun [C] (also run on the bank) BANKING, FINANCE
a period when many people take their money out of a bank because they are afraid the bank will lose it or go out of business: »

Last week, a California-based bank became the largest bank to fail in two decades after a bank run depleted its deposits.


Financial and business terms. 2012.

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