WWI, Run on Berlin Bank When War Declared, 1914 - stock photo
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WWI, Run on Berlin Bank When War Declared, 1914

Crowd of people at door of a bank in Berlin, Germany at the beginning of World War I. A bank run occurs when a large number of bank or other financial institution's customers withdraw their deposits simultaneously due to concerns about the bank's solvency. As more people withdraw their funds, the probability of default increases, thereby prompting more people to withdraw their deposits. In extreme cases, the bank's reserves may not be sufficient to cover the withdrawals. A bank run is typically the result of panic, rather than a true insolvency on the part of the bank. Bain News Service August, 1914.

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