Sirwin
Sirwin

What is a bank run?

By diamondstonk | AnythingCrypto | 10 Mar 2023


Today's most mentioned financial news is Silicon Valley Bank. Concern is that the issue may not stay with SVB but can be contagious. The regulators seem to be taking an action to prevent further impact to the whole financial system so it will need more time to see how big the impact can be and how it would impact crypto as well with recent Silvergate news.

Many SVB related news today mentions about term 'bank run'.  What is a bank run? A bank run is a phenomenon that occurs when a large number of customers of a bank or other financial institution decide to withdraw their deposits at the same time. This usually happens when there is a widespread fear or rumor that the bank is in financial trouble and may not be able to honor its obligations to its depositors. A bank run can have serious consequences for both the bank and the economy, as it can lead to a loss of confidence in the banking system and a shortage of liquidity.

 

I wish this doesn't impact economy too much, we'll see..

 

Photo by KEHN HERMANO: https://www.pexels.com/photo/watercrafts-on-shore-under-blue-sky-with-orange-clouds-7148953/

 

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diamondstonk
diamondstonk

Publish0x, blog, crypto


AnythingCrypto
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