Bank failure
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A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities. Failing banks share co
Depositors "run" on a failing New York City bank in an effort to recover their money, July 1914
Bank run
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A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may fail in the near future. It may occur when, in a fractional-reserve banking s
Bank failure
…value to generate liquid money to pay its depositors on demand. The inability of the solvent banks to lend liquid money to the insolvent bank creates a bank panic among the depositors as more depositors try to take out cash deposits from the bank. As such, the bank is unable to fulfill the demands of all of its…
American Union Bank, New York City, April 26, 1932
10 livres tournois banknote issued by Banque Royale, France, 1720. In 1720, shareholders demanded cash payment, leading to a run on the bank and financial chaos in France. On display at the British Museum.
The run on the Montreal City and District Savings Bank, with the mayor addressing the crowd. Printed in 1872 in the Canadian Illustrated News.
A poster for the 1896 Broadway melodrama The War of Wealth depicts a 19th-century bank run in the U.S.