CoachA bank run is a withdrawal of deposits faster than the bank can meet from its liquid assets, driven by depositors’ fear that others will withdraw first: individually rational, collectively self-fulfilling.
Exemples
Example 24.13 (The stylised bank a year later)
After the 350 basis point rise, the MBS book held to maturity has lost 19.2% of its value, USD 17.2 billion, 108% of the bank’s equity; the Treasuries have lost 3.9. On the day, the bank can pay out its cash and sell its Treasuries at market: 36.1, 20.9% of its deposits (Figure 24.4). Anything more requires pledging or selling the MBS, which realises the loss.