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What is a Bank Run?

What is a Bank Run?

  • A bank run is a sudden rush of depositors seeking to withdraw funds from the banking system.

How Do I  Remember It?

  • Think of a bank run as a “run for the exits.” It’s like a situation where everyone is trying to get their money out of the bank as quickly as possible, causing chaos and potentially leading to the bank’s failure.

Real World Example

  • One of the most famous bank runs in history occurred during the Great Depression in the 1930s when depositors lost confidence in the banking system and rushed to withdraw their savings. This led to widespread bank failures and contributed to the severity of the economic downturn.

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By: Ryan Aquino 

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