Run: Difference between revisions
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*[[Maturity transformation]] | *[[Maturity transformation]] | ||
*[[Redemption gate]] | *[[Redemption gate]] | ||
*[[Reputational risk]] | |||
*[[Run rate]] | *[[Run rate]] | ||
*[[Stability]] | *[[Stability]] | ||
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.
