RtP and Run: Difference between pages
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'' | ''Banking''. | ||
A run on a bank or other financial institution is a situation where a large number of depositors withdraw their funds at the same time. | |||
A run will very quickly threaten the liquidity of the bank, and ultimately its survival. | |||
Runs can be self-perpetuating once they have begun, as the run itself causes further loss of confidence in the institution. | |||
[[ | |||
[[ | ==See also== | ||
[[ | *[[Bank]] | ||
[[ | *[[Liquidity]] | ||
*[[Liquidity fee]] | |||
*[[Maturity transformation]] | |||
*[[Redemption gate]] | |||
Revision as of 16:00, 23 July 2016
Banking.
A run on a bank or other financial institution is a situation where a large number of depositors withdraw their funds at the same time.
A run will very quickly threaten the liquidity of the bank, and ultimately its survival.
Runs can be self-perpetuating once they have begun, as the run itself causes further loss of confidence in the institution.
