Run on the bank

Run on the bank,

Definition of Run on the bank:

  1. A surge of individuals withdrawing funds from a financial institution due to fear that the entity will become insolvent in the near future. This typically results in long lines of people waiting outside of the institution to withdraw funds or transfer them to another institution. If the institution is located in the United States and is provides FDIC coverage, customers would still be covered up to a certain dollar amount if the firm became insolvent.

Meaning of Run on the bank & Run on the bank Definition