The bank run is a situation when the depositors of the bank try to withdraw all their money because they are worried about the stability of the bank. This situation often created when depositors find out that their money is standing in a bank that is in deep debt, when credit rating agencies degrade the bank, or when the bank is rumored on the verge of bankruptcy.
As more and more people seek to withdraw their money , their fears become self-fulfilling prophecies, as bank reserves usually do not have enough cash to cover sudden and large withdrawals. ۔ Ultimately, this could bring the bank closer to bankruptcy and increase the likelihood of default.