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Banking on Disaster: What You Need to Know About Bank Runs
What would you do if the bank closed its doors and refused to give you your money?
This is a question that many people are asking themselves after the recent closure of Sillicon Valley Bank [SVB]. A bank run is a situation in which customers withdraw their deposits en masse, causing the bank ultimately to fail.
In this blog post, I will explain all you need to know about bank runs, what causes them, how they work, and what effects they have on the economy.
I will also discuss how to protect yourself from a bank run and what you can expect to happen next.
This is not the first and it will not be the last bank run.
Let’s dive in and learn all you need to know about the SVB bank run and bank runs in general:
Causes, Effects and Prevention!
The Second Largest Banking Failure in US History
Last Friday, March 11, 2023, a whopping $100bn of market value related to banks and financials simply evaporated in one single day as worries around SVB [Silicon Valley Bank] intensified.
SVB was the second-largest banking failure in US history, and analysts question how this could have happened at all.
