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

>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?

Only if the bank survives. If it doesn’t, then the depositors are fucked unless their deposits are insured.