Also known as a
bank run, this is what happens in a
fractional reserve system when
depositors lose
confidence in the
banks. They go to
withdraw their
money, but the
bank does not have enough to pay them, because it has loaned out more than it has. This causes more and more depositors to
panic, and to
demand their money more
viciously.
Enough runs on the bank can cause economic disaster. They also can cause riots, and unemployment for bankers.