Run: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand.) |
imported>Doug Williamson (Add link.) |
||
| Line 17: | Line 17: | ||
*[[Maturity transformation]] | *[[Maturity transformation]] | ||
*[[Redemption gate]] | *[[Redemption gate]] | ||
*[[Stability]] | |||
Revision as of 16:42, 9 August 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.
