Run

From ACT Wiki
Revision as of 12:04, 24 July 2016 by imported>Doug Williamson (Expand.)
Jump to navigationJump to search

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