fbpx

ARM THE WORLD
With the Information, Resources and Opportunities Required to
Fight Evil. Avert Suffering. At Scale.

Saturday, February 4, 2023

What is a bank run? | Yahoo.com

Must Read

Bank runs happen when a big number of individual account holders remove a lot of money all at once out of concern that the bank might collapse. 

When consumers desire to withdraw significant sums of money quickly, a bank run may happen. In a fractional banking system, where banks only maintain a portion of deposits on hand as cash, this scenario is possible. They invest the remaining funds in interest-bearing assets or employ loans to create revenue. However, because banks typically only hold a portion of deposits in cash, they may encounter issues if clients request too many withdrawals too soon.Here are some precautions that banks may take: 

1. Slow the Pace 

2. Borrow Money 

3. Use Term Deposits 

4. Bottom Line 

Source:https://finance.yahoo.com/news/bank-run-191238341.html?guccounter=1  

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Here’s what happens when US Navy special operators go up against dolphins trained to keep them out of sensitive bases | Business Insider

The Marine Mammal Program was put into place by the Navy in the 1960s to protect ports and significant...

More Articles Like This