Run: Difference between revisions

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*[[Maturity transformation]]
*[[Maturity transformation]]
*[[Redemption gate]]
*[[Redemption gate]]
*[[Reputational risk]]
*[[Run rate]]
*[[Stability]]
*[[Stability]]
*[[Time subordination]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 15:10, 11 August 2020

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.


Sometimes known as a liquidity run.


See also