MoneyGlossary.com
Home  

Bank run (bank panic)

Definition: [crh] A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the Definition: "/?rd=chartering">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 itDefinition: s 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.

<< Go back