Silent Bank Run

Silent Bank Run
A situation in which a bank's depositors withdraw funds en masse without physically entering the bank. A silent bank run is much like a normal bank run, except withdrawals are made by customers in the form of electronic fund transfers and wire transfers, rather than going into the bank and withdrawing cash or a bank draft. As banking has become more and more automated, the electronic movement of funds from one institution to another has become more common.

During the 2008 financial crisis, many financial institutions faced silent bank runs, as depositors feared losing their deposits if banks were to collapse. Across America and Europe, particularly in the U.K. and Iceland, silent bank runs drained banks of their reserves, which served to deepen the crisis and force several large institutions to the brink of collapse.


Investment dictionary. . 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Bank run — A bank run (also known as a run on the bank) occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent. As a bank run progresses, it generates its own momentum, in a kind of… …   Wikipedia

  • Bank robbery — is the crime of robbing a bank. It is also called a bank heist, especially in the United StatesFact|date=September 2008. Theft which lacks intimidation or threat of violent confrontation is not truly a robbery but in fact burglary. Only a very… …   Wikipedia

  • Zombie bank — A Zombie Bank refers to a bank with a net worth which is less than zero, but which continues to operate because of implicit or explicit government guarantee. Zombie banks are a key factor in causing a silent bank run, since the reliability of the …   Wikipedia

  • silent run — n. The mass transfer of funds out of a troubled bank by online users. Example Citations: What if there were a run on a bank and no one knew? In recent days some U.S. media have focused on a silent run on the deposits of Wachovia bank, which is… …   New words

  • Anglo Irish Bank hidden loans controversy — For this controversy in the wider context of the Irish banking crisis, see 2008–2009 Irish banking crisis. The Anglo Irish Bank hidden loans controversy (also known as the circular transactions controversy) began in the Republic of Ireland in… …   Wikipedia

  • Jay and Silent Bob Strike Back — Theatrical release poster Directed by Kevin Smith …   Wikipedia

  • Save Silent Valley — is an Indian Social Movement started in 1973 to save the Silent Valley Reserve Forest in Palakkad District, Kerala, South India from being flooded by a hydroelectric project. The valley was declared as Silent Valley National Park in 1985. However …   Wikipedia

  • Stanbic Bank 20 Series — Countries Zimbabwe Administrator Zimbabwe Cricket Union Format …   Wikipedia

  • vacation bank — n. An employee s yearly allotment of vacation days. Example Citations: The survey also found U.S. employees tend to divide their time off into one full power week, utilizing the rest of their vacation bank as days sprinkled across the calendar to …   New words

  • zombie bank — n. A bank that cannot lend money because its liabilities are greater than its assets, but remains in business thanks to government support. Example Citations: There s a reasonable chance not a certainty that Citi and [Bank of America], together,… …   New words

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”