Difference between revisions of "Bank run"
Jump to navigation
Jump to search
m (added extra sentence; alphabetized 'See also' list) |
|||
| Line 15: | Line 15: | ||
* [[Panic of 1907]] | * [[Panic of 1907]] | ||
* [[Recession]] | * [[Recession]] | ||
| + | |||
| + | {{Template:Economic preparedness topics}} | ||
| + | |||
| + | [[Category : Economic Preparedness]] | ||
| + | |||
[[Category:Business]] | [[Category:Business]] | ||
[[Category:Economic history]] | [[Category:Economic history]] | ||
Revision as of 11:23, February 21, 2015
A bank run is a series of unexpected large cash withdrawals from a bank 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. Bank runs are a risk for every bank that operates under a fractional-reserve banking system.[1]
References
- ↑ Mankiw, N.G. Principles of Macroeconomics; South-Western Cengage Learning; Mason, OH. Page 353, (2008)
Sources
http://usinfo.state.gov/products/pubs/oecon/chap12.htm
See also
