Bank Runs

Economics 2 - Macroeconomics Essay What are the causes of 'bank runs'? At the centre of any bank's operations is a relationship which at any given time could become a major problem, but for the great majority of the time is not. A bank relies on the fact that although any and all of its' depositors have a right to withdraw that money at a given time, it is very unlikely that a great number of …

…care in terms of investment, thereby competing for customers by means other than purely via interest rates. References · Lewis, M.K. & Davis, K.T. (1987) Domestic & International Banking; Philip Allan Publishers Ltd · Kennedy, Susan Estabrook (1973) The Banking Crisis of 1933; University Press of Kentucky · Revell, Jack (1975) Solvency and Regulation of Banks; University of Wales Press · Sundararajan, V & Balino, Tomas J.T. (1991) Banking Crises: Cases and Issues; International Monetary Fund · Blanchard, Michael (2000) Macroeconomics; Prentice Hall · Economist CD-ROM (1991-2000)