A bank run occurs when a large group of depositors withdraw their money from banks at the same time due to fears about the bank's solvency. This can lead to a domino effect of withdrawals, causing banks to deplete their cash reserves and potentially end up in default. Examples of bank runs include those during the Great Depression and more recent instances involving Silicon Valley Bank, Washington Mutual Bank, and Wachovia Bank. To prevent bank runs, governments have taken measures such as establishing reserve requirements and creating the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits.
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