Run: Difference between revisions
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Runs can be self-perpetuating once they have begun, as the run itself causes further loss of confidence in the institution. | 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''. | |||
Revision as of 12:04, 24 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.
Sometimes known as a liquidity run.
