A Bank Run is when most customers of a bank take out all their money due to fear and concern of bankruptcy. When major withdrawals take place, banks will end up using their cash reserves to pay back customers, this in turn also leads to insolvency. Panic is the driving emotion behind a bank run and can happen due to major news or rumours.
Bank Run
Defenition: A Bank Run is when most customers of a bank take out all their money due to fear and concern of bankruptcy.
