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Bank Run

A situation in which depositors withdraw funds from a commercial bank because they fear that it may go bankrupt and not honour its liabilities such as the deposits of the bank's savers. In September 2007, Northern Rock became the first UK bank in 150 years to suffer a bank run. Bank runs were also seen during the banking crisis in Cyprus.

A situation where a large number of bank customers withdraw their deposits simultaneously due to fears that the bank may become insolvent. This can lead to a liquidity crisis, as experienced by Northern Rock in 2007.

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