In other words, this is a massive withdrawal of deposits by depositors due to doubts about the solvency of the bank.

The more people withdraw their funds, the higher the likelihood of default, which prompts even more people to withdraw their deposits. In extreme cases, the bank's reserves may not be sufficient to cover the total amount of funds withdrawn.

Bank runs are often the result of FUD panic and resulting fears.

By the way, a bank run in the form of a threat to the US banking system could have happened due to the recent collapse of two second-tier banks Silvergate and Silicon Valley Bank in one week, but the Fed managed to rectify the situation by additionally issuing helicopter money to the market.

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