Definition, Meaning & Synonyms
run-on-a-bank
Noun
/ˈrʌn ɒn ə bæŋk/
Definition
A run-on-a-bank occurs when a large number of customers withdraw their deposits simultaneously due to concerns about the bank’s solvency.
Examples
- During the financial crisis, many banks faced a run-on-a-bank as customers rushed to withdraw their savings.
- The fear of insolvency triggered a run-on-a-bank, leading to urgent governmental intervention.
Meaning
The term refers to a situation where panic leads to a sudden demand for cash from a bank, often indicating a lack of confidence among depositors.
Synonyms
- Bank panic
- Bank run
- Deposit run
