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Bank run

1:24

Bank Runs Explained in One Minute: How Banks Become Insolvent and Fail

3:15

Modern Bank Runs

1:33

Mary Poppins – Bank Run

3:41

Bank Runs Are Good?

0:39

Bart Simpson Starts a Bank Run

A bank run occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system, a large number of customers withdraw cash from deposit accounts with a financial institution at the same time because they believe that the financial institution is, or might become, insolvent; and keep the cash or transfer it into other assets, such as government bonds, precious metals or gemstones. When they transfer funds to another institution it may be characterised as a capital flight. As a bank run progresses, it generates its own momentum: as more people withdraw cash, the likelihood of default increases, triggering further withdrawals. This can destabilize the bank to the point where it runs out of cash and thus faces sudden bankruptcy. To combat a bank run, a bank may limit how much cash each customer may withdraw, suspend withdrawals altogether, or promptly acquire more cash from other banks or from the central bank, besides other measures.
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    • History 

    • Theory 

    • Systemic banking crisis 

    • Prevention and mitigation 

    • Depictions in fiction