In the event of a bank run, do people eventually get their money back? If not, why not?

Question

I understand why banks cannot pay people back in the moment, but wouldn’t they still owe their depositors their money when they eventually DO get the money back presumably once the recession is over?

This is all assuming the bank does not permanently go bankrupt of course. I understand that some banks may just never recover and close their doors for good.

In: 46

Answer 1

A bank run isn’t really caused because everyone needs their money right now it’s we don’t think the bank will survive and if it dies before we get our money out we will never get it back we have things today to make sure people don’t lose that money and importantly stop bank runs.