Bank run
BankingDefinition
Mass withdrawal of deposits from a bank, typically driven by fear of insolvency. Causes the bank to fail because deposits aren't held in cash but in loans / securities — sudden liquidity demand triggers fire sales.
Modern bank runs spread via Twitter/X and mobile banking — SVB lost $42B in deposits in a single day (March 9, 2023). Old-school physical runs (1907, 1929-33) took weeks to develop.
Modern bank runs spread via Twitter/X and mobile banking — SVB lost $42B in deposits in a single day (March 9, 2023). Old-school physical runs (1907, 1929-33) took weeks to develop.