bank panic
Mass withdrawal frenzy
A bank panic is a crisis in which many depositors simultaneously rush to withdraw their money, fearing their bank will fail.
The panic often becomes self-fulfilling—banks hold only a fraction of deposits as cash, so mass withdrawals can cause even healthy institutions to collapse.
Bank panics were common before deposit insurance: The bank panic of 1907 led to the creation of the Federal Reserve.
- runMove swiftly on foot
- crashSudden violent impact
- collapseSudden structural failure
- economic collapseCatastrophic failure of finances
- withdrawalAct of taking away
fear · contagion · depositors · long lines · hysteria · insolvency · liquidity · credit crunch · stampede · 1929 · Great Depression · financial crisis · bailout · too big to fail · failure · queues · rumor · frenzy
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
- US bankingFDIC, Fed, Federal Reserve, Glass-Steagall, savings and loan
- banking termsaccount number, routing number, balance, FDIC, credit check
- Financial Crisisfinancial crisis, Great Recession, recession, credit crisis, market crash
- currency historygold standard, silver standard, bimetallism, fiat money, fiat currency
- fiscal policybudget deficit, deficit spending, national budget, budget surplus, budget deficits
bank panicfinancial stability
Sound economic standing
financial security · economic stability · economic prosperity · bull market
bank panicpublic trust
Faith in institutions
irrational exuberance · investor confidence · consumer confidence · bull market
bank, panic, banks, banked, banking, banker, bankers, panics, panicked