A bank run is when a large number of people withdraw their money from a bank all at once. This is because they think the bank is about to fail. It’s basically a panic that can quickly lead to the downfall of a bank. Banking is built on trust—the trust that your money will be there when you need it. But when that trust is broken, it can trigger a domino effect that leads to a full-blown bank run. In this blog post, we will explore what a bank run is. We will also discuss some of the historical examples of bank runs and their devastating effects.
The History of Bank Runs
Between the late 1800s and early 1900s, bank runs were a common occurrence in the United States. They typically happen when a bank is suspected of being insolvent (unable to pay its debts). It could also be when depositors become worried that the bank might become insolvent….
