Run on the bank

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A run on the bank usually occurs when people start taking their money out of a bank and it spirals into a panic with others taking money out because they saw the first people taking their money out. The fear that drives this cycle is that if a large percentage of the people who have money at a bank pull it out, the bank may not have enough cash on hand to meets its obligation to other individuals since at least some of the bank's money is tied up in being loaned out.