The problem (bank run) that a bank encounters when all or majority of clients rush to claim back their deposits. If the problem persists, a bank may fail and go out of business. This situation puts banks in an unstable position where their clients flock in huge numbers and compete to get their deposits back before other depositors. As a result, banks run out of deposited funds and may go bankrupt, and if the situation aggravates, the broad economy may experience a negative shock in money supply, which consequently puts the economy face to face with a large-scale problem.

At times of run problem, banks may need to get help from a lender of last resort or a bail-out assistance in the form of deposit insurance.

However, not all bank runs cause an economy-wide turmoil. This depends on many factors including staging a swift reaction to the very essence of the problem, and timely intervention by regulatory authorities, etc.