Bank run (bank panic) is a series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the chartering agency, i.e. many depositors withfraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its depoits, a large number of withdrawals in a short period of time can deplete available cash and force the bank to close and possibly go out of business.
Definition