why is a bank run bad 
bank runs can bring down banks and cause a more systemic financial crisis a bank usually only has a limited amount of cash on hand that is not the same as its overall deposits so if too many customers demand their money the bank simply won t have enough to return to their depositors the bottom linea bank run is when customers flock to banks either physically or online to withdraw their funds because they lose confidence in the bank in extreme cases they can cause the collapse of a bank as a bank run did in 2023 when silicon valley bank became insolvent to reduce your risk of losing money in a bank run you can keep your deposit amounts under the fdic insured limit of 250 000 per depositor per insured bank if you need to deposit more funds you can open an account at another bank and receive the same protection 18