Talk about the ＂Bank Run＂ -- Making Northern Rock as Example

Lulu Li

《International Journal of Social Science and Education Research》 5卷1期 (2022/01) Pp. 293-299

https://doi.org/10.6918/IJOSSER.202201_5(1).0049

摘要

Bank runs are one of the challenges faced by the banking industry. Poor management or insufficient liquidity, or even rumors about the bank may lead to bank runs. Similarly, in 2007, the neglect of northern Rock's asset and liability management led to a serious bank run, leading to the nationalization and even bankruptcy of the bank. Taking history as a mirror, this paper takes Northern Rock as an example. The D‐D model is used to study the mechanism of bank runs, explain the necessity of innovation of deposit insurance system, crisis communication strategy and financial supervision system of banks, and analyze the disposal measures and prevention system to deal with bank runs, so as to realize the steady development of bank operations and maintain the good reputation of banks.

關鍵字

Bank run ； Northern Rock ； Deposit Insurance System ； Crisis Communication

參考文獻

Li. (April 2019). Reputation management of China's commercial banks from the perspective of the Run on Northern Rock. Cnki.

Wu. (may, 2021). An empirical study on the impact of deposit insurance system on the bankruptcy risk of commercial banks. Cnki.

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Zhu. (May 2021). Crisis communication and bank runs: the case of Northern Rock. Cnki.

Wayne & Song. (2012). Is financial panic justified by institutional runs?(ii). Cnki.