Abstract
This paper analyses the significance of bank runs in today's banking system. The first section researches some of the origins that cause bank runs to take place and its effect it has on the country's economy. It is found that some of the causes have been a result of:
· Decline in the terms of trade
· Economic growth and inflation rates
· Bank-lending booms
· Decline in equity prices
· Increase in bank liabilities
The second part of this research deals with policies in which the central…