run

run definition - business

run

A demand for their funds by a large number of frightened depositors of a financial institution. Financial institutions normally keep on hand only a small proportion of deposits, so a run can result in the failure that depositors fear. Federal deposit insurance was introduced to give depositors confidence their funds are safe.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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