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.
Nearby TermsBank of Japan (BoJ) Bank regulation Bank run (bank panic) Bank trust department Bank wire
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University