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Bank run

Index Bank run

A bank run (also known as a run on the bank) occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function in the near future. [1]

79 relations: American Madness, Archibald MacLeish, Arthur Hailey, Arthur Wellesley, 1st Duke of Wellington, Asset–liability mismatch, Bad bank, Bailout, Bank, Bank regulation, Bank reserves, Bankruptcy, Basel III, Ben Bernanke, Bridge bank, Canadian Illustrated News, Capital flight, Capital requirement, Car, Cascading failure, Central bank, Correlation and dependence, Credit cycle, Demand deposit, Deposit account, Deposit insurance, Developed country, Emergency Banking Act, Federal Deposit Insurance Corporation, Federal Reserve System, Financial crisis, Financial crisis of 2007–2008, Fractional-reserve banking, Full-reserve banking, Game theory, Gemstone, Great Depression, Gross domestic product, House, IndyMac, Insolvency, It's a Wonderful Life, Law of large numbers, Lender of last resort, List of recessions in the United States, Loan, Lombard Street: A Description of the Money Market, Market liquidity, Mary Poppins (film), Maturity (finance), Mervyn King, Baron King of Lothbury, ..., Mississippi Company, Moral hazard, Nash equilibrium, Noble House (miniseries), Northern Rock, Panic (1935 play), Precious metal, Recession, Reform Act 1832, Reserve requirement, Robert K. Merton, Savings and loan crisis, Self-fulfilling prophecy, Social Theory and Social Structure, South Sea Company, Spillover effect, Systemic risk, The Charlotte Observer, The Jungle, The Moneychangers, The Pope Must Die, Thomas Sowell, Time deposit, Transaction account, Transparency (market), Tulip mania, Walter Bagehot, William IV of the United Kingdom, Zombie bank. Expand index (29 more) »

American Madness

American Madness is a 1932 American pre-Code film directed by Frank Capra and starring Walter Huston as a New York banker embroiled in scandal.

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Archibald MacLeish

Archibald MacLeish (May 7, 1892 – April 20, 1982) was an American poet and writer who was associated with the modernist school of poetry.

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Arthur Hailey

Arthur Hailey (April 5, 1920 – November 24, 2004) was a British-Canadian novelist whose plot-driven storylines were set against the backdrops of various industries.

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Arthur Wellesley, 1st Duke of Wellington

Arthur Wellesley, 1st Duke of Wellington, (1 May 1769 – 14 September 1852) was an Anglo-Irish soldier and statesman who was one of the leading military and political figures of 19th-century Britain, serving twice as Prime Minister.

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Asset–liability mismatch

In finance, an asset–liability mismatch occurs when the financial terms of an institution's assets and liabilities do not correspond.

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Bad bank

A bad bank is a corporate structure to isolate illiquid and high risk assets held by a bank or a financial organisation, or perhaps a group of banks or financial organisations.

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Bailout

A bailout is a colloquial term for the provision of financial help to a corporation or country which otherwise would be on the brink of failure or bankruptcy.

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Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Bank regulation

Bank regulation is a form of government regulation which subjects banks to certain requirements, restrictions and guidelines, designed to create market transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things.

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Bank reserves

Bank reserves are a commercial banks' holdings of deposits in accounts with a central bank (for instance the European Central Bank or the applicable branch bank of the Federal Reserve System, in the latter case including federal funds), plus currency that is physically held in the bank's vault ("vault cash").

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Bankruptcy

Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors.

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Basel III

Basel III (or the Third Basel Accord or Basel Standards) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk.

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Ben Bernanke

Ben Shalom Bernanke (born December 13, 1953) is an American economist at the Brookings Institution who served two terms as Chairman of the Federal Reserve, the central bank of the United States, from 2006 to 2014.

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Bridge bank

A bridge bank is an institution created by a national regulator or central bank to operate a failed bank until a buyer can be found for its operations.

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Canadian Illustrated News

The Canadian Illustrated News was a weekly Canadian illustrated magazine published in Montreal from 1869 to 1883.

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Capital flight

Capital flight, in economics, occurs when assets or money rapidly flow out of a country, due to an event of economic consequence.

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Capital requirement

Capital requirement (also known as regulatory capital or capital adequacy) is the amount of capital a bank or other financial institution has to hold as required by its financial regulator.

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Car

A car (or automobile) is a wheeled motor vehicle used for transportation.

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Cascading failure

A cascading failure is a process in a system of interconnected parts in which the failure of one or few parts can trigger the failure of other parts and so on.

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Central bank

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates.

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Correlation and dependence

In statistics, dependence or association is any statistical relationship, whether causal or not, between two random variables or bivariate data.

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Credit cycle

The credit cycle is the expansion and contraction of access to credit over time.

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Demand deposit

Demand deposits, bank money or scriptural money are funds held in demand deposit accounts in commercial banks.

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Deposit account

A deposit account is a savings account, current account or any other type of bank account that allows money to be deposited and withdrawn by the account holder.

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Deposit insurance

Explicit deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due.

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Developed country

A developed country, industrialized country, more developed country, or "more economically developed country" (MEDC), is a sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations.

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Emergency Banking Act

The Emergency Banking Act (the official title of which was the Emergency Banking Relief Act), Public Law 1, 48 Stat.

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Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.

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Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America.

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Financial crisis

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.

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Financial crisis of 2007–2008

The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

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Fractional-reserve banking

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities.

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Full-reserve banking

Full-reserve banking (also known as 100% reserve banking) is a proposed alternative to fractional-reserve banking in which banks would be required to keep the full amount of each depositor's funds in cash, ready for immediate withdrawal on demand.

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Game theory

Game theory is "the study of mathematical models of conflict and cooperation between intelligent rational decision-makers".

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Gemstone

A gemstone (also called a gem, fine gem, jewel, precious stone, or semi-precious stone) is a piece of mineral crystal which, in cut and polished form, is used to make jewelry or other adornments.

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Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

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Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

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House

A house is a building that functions as a home.

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IndyMac

IndyMac, a contraction of Independent National Mortgage Corporation, was an American bank based in California that failed in 2008 and was seized by the United States Federal Deposit Insurance Corporation (FDIC).

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Insolvency

Insolvency is the state of being unable to pay the money owed, by a person or company, on time; those in a state of insolvency are said to be insolvent.

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It's a Wonderful Life

It's a Wonderful Life is a 1946 American Christmas fantasy comedy-drama film produced and directed by Frank Capra, based on the short story and booklet The Greatest Gift, which Philip Van Doren Stern wrote in 1939 and published privately in 1945.

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Law of large numbers

In probability theory, the law of large numbers (LLN) is a theorem that describes the result of performing the same experiment a large number of times.

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Lender of last resort

A lender of last resort (LOLR) is the institution in a financial system that acts as the provider of liquidity to a financial institution which finds itself unable to obtain sufficient liquidity in the interbank lending market and other facilities or sources have been exhausted.

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List of recessions in the United States

There have been as many as 47 recessions in the United States dating back to the Articles of Confederation, and although economists and historians dispute certain 19th-century recessions, the consensus view among economists and historians is that "The cyclical volatility of GNP and unemployment was greater before the Great Depression than it has been since the end of World War II." Cycles in the country's agricultural production, industrial production, consumption, business investment, and the health of the banking industry contribute to these declines.

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Loan

In finance, a loan is the lending of money by one or more individuals, organizations, and/or other entities to other individuals, organizations etc.

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Lombard Street: A Description of the Money Market

Lombard Street: A Description of the Money Market (1873) is a book by Walter Bagehot.

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Market liquidity

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.

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Mary Poppins (film)

Mary Poppins is a 1964 American musical-fantasy film directed by Robert Stevenson and produced by Walt Disney, with songs written and composed by the Sherman Brothers.

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Maturity (finance)

In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

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Mervyn King, Baron King of Lothbury

Mervyn Allister King, Baron King of Lothbury, (born 30 March 1948) is a British economist and public servant who served as the Governor of the Bank of England from 2003 to 2013.

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Mississippi Company

The Mississippi Company (Compagnie du Mississippi; founded 1684, named the Company of the West from 1717, and the Company of the Indies from 1719) was a corporation holding a business monopoly in French colonies in North America and the West Indies.

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Moral hazard

In economics, moral hazard occurs when someone increases their exposure to risk when insured.

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Nash equilibrium

In game theory, the Nash equilibrium, named after American mathematician John Forbes Nash Jr., is a solution concept of a non-cooperative game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.

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Noble House (miniseries)

Noble House is an American television miniseries that was produced by De Laurentiis Entertainment Group, and broadcast by NBC in 1988.

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Northern Rock

Northern Rock, formerly the Northern Rock Building Society, was a British bank.

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Panic (1935 play)

Panic is a 1935 verse play by Archibald MacLeish.

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Precious metal

A precious metal is a rare, naturally occurring metallic chemical element of high economic value.

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Recession

In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity.

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Reform Act 1832

The Representation of the People Act 1832 (known informally as the 1832 Reform Act, Great Reform Act or First Reform Act to distinguish it from subsequent Reform Acts) was an Act of Parliament of the United Kingdom (indexed as 2 & 3 Will. IV c. 45) that introduced wide-ranging changes to the electoral system of England and Wales.

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Reserve requirement

The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank.

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Robert K. Merton

Robert King Merton (born Meyer Robert Schkolnick; 5 July 1910 – 23 February 2003) was an American sociologist.

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Savings and loan crisis

The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995: the Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 institutions from 1986 to 1989 and the Resolution Trust Corporation (RTC) closed or otherwise resolved 747 institutions from 1989 to 1995.

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Self-fulfilling prophecy

A self-fulfilling prophecy is a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior.

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Social Theory and Social Structure

Social Theory and Social Structure (STSS) was a landmark publication in sociology by Robert K. Merton.

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South Sea Company

The South Sea Company (officially The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing) was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt.

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Spillover effect

In economics, spillover effects are economic events in one context that occur because of something else in a seemingly unrelated context.

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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system.

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The Charlotte Observer

The Charlotte Observer is a newspaper serving Charlotte and its metro area.

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The Jungle

The Jungle is a 1906 novel written by the American journalist and novelist Upton Sinclair (1878–1968).

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The Moneychangers

Not to be confused with the 1908 novel The Moneychangers (Sinclair novel) by Upton Sinclair.

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The Pope Must Die

The Pope Must Die (U.S. alternate title The Pope Must Diet!) is a 1991 comedy film directed by Peter Richardson and released by Palace Pictures with the backing of Channel 4 Films.

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Thomas Sowell

Thomas Sowell (born June 30, 1930) is an American economist and social theorist who is currently Senior Fellow at the Hoover Institution, Stanford University.

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Time deposit

A time deposit or term deposit (also known as a certificate of deposit in the United States) is a deposit with a specified period of maturity and earns interest.

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Transaction account

A transaction account, checking account, current account, demand deposit account, or share draft account (at credit unions) is a deposit account held at a bank or other financial institution.

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Transparency (market)

In economics, a market is transparent if much is known by many about: What products and services or capital assets are available, market depth (quantity available), what price, and where.

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Tulip mania

Tulip mania (Dutch: tulpenmanie) was a period in the Dutch Golden Age during which contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels and then dramatically collapsed in February 1637.

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Walter Bagehot

Walter Bagehot (3 February 1826 – 24 March 1877) was a British journalist, businessman, and essayist, who wrote extensively about government, economics, and literature.

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William IV of the United Kingdom

William IV (William Henry; 21 August 1765 – 20 June 1837) was King of the United Kingdom of Great Britain and Ireland and King of Hanover from 26 June 1830 until his death in 1837.

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Zombie bank

A zombie bank is a financial institution that has an economic net worth less than zero but continues to operate because its ability to repay its debts is shored up by implicit or explicit government credit support.

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Bank Insolvency, Bank crises, Bank crisis, Bank panic, Bank runs, Banking crisis, Banking panic, Run on a bank, Run on the bank, Run on the banks, Silent run, Systemic banking crises, Systemic banking crisis.

References

[1] https://en.wikipedia.org/wiki/Bank_run

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