If a “healthy” bank had a run, would it still survive?
In other words, are any banks solvent if a run happens to them?
If not, then at what point are banks considered solvent.
Also, if no bank can survive a bank run, would the CEO be at fault here for kind of inciting one (by essentially saying in the call “we’ll be alright, as long as you guys don’t run”)?
In other words, are any banks solvent if a run happens to them?
If not, then at what point are banks considered solvent.
Also, if no bank can survive a bank run, would the CEO be at fault here for kind of inciting one (by essentially saying in the call “we’ll be alright, as long as you guys don’t run”)?