Economics A-Level
Bank run
What Bank run means in Economics A-Level, as defined for AQA.
Definitions of Bank run
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Reference: AQA
A sudden loss of confidence that leads depositors to withdraw funds simultaneously, exacerbating the mismatch between short-term liabilities and long-term assets.
A situation in which sudden deposit withdrawals occur, which a higher liquidity ratio helps a bank to survive.
Topics that use Bank run
- The regulation of the financial system (AQA A-Level)
Related terms
- Capital ratio
- Consumer protection
- Financial stability
- Insolvency
- Liquidity ratio
- Macro-prudential policy
- Macroprudential regulation
- Maturity transformation
Using Bank run in the exam
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