Bank Run

In financial regulation, a bank run is the sudden withdrawal of deposits from a bank, which may result in the bank becoming insolvent.

Bank runs where a common occurrence in United States in the market crash of 1929 and during the 1930s. Regulation and federal policy deposit insurance entirely eliminated this phenomenon in subsequent decades.

References

1. Diamond, Douglas W., and Philip H. Dybvig. "Bank runs, deposit insurance, and liquidity." Journal of political economy 91, no. 3 (1983): 401-419.
2. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.