A bank run can happen when:

Question

Quizplus · Accepted Answer

A bank run occurs when a large number of customers withdraw their deposits from a bank due to fears about the bank's solvency or ability to meet its obligations. This can occur when customers believe that other customers may also withdraw their funds, creating a self-fulfilling prophecy. Therefore, it is the belief that a bank run is likely that can trigger an actual bank run, rather than factors such as the bank only lending to creditworthy borrowers, the bank's size, or whether the bank is owned by the government.

A Bank Run Can Happen When