Bank Runs – A brief overview of notable bank runs in history

Bank runs have been pivotal moments in financial history, shaping the banking industry and regulatory frameworks. As internal auditors, understanding the lessons learned from these events is vital for effective risk management. By examining notable instances of bank runs, internal auditors can gain valuable insights to inform their risk assessment and control evaluation processes. Analyzing historical incidents such as the Panic of 1907, the Great Depression, and more recent crises highlights the importance of robust risk governance, proactive monitoring, and crisis management strategies. In this article, we explore a comprehensive list of notable bank runs, offering practical and actionable insights for internal auditors to enhance their risk management practices.

Given the recent Silicon Valley Bank (SVB) and First Republic Bank collapses, it might make sense to take a broader view on things by looking (at a very high level) at key bank runs throughout history, both in the US and across the world.

Notable Bank Runs in History, post Industrial Revolution (modern banking era)

Year	Bank	Country	Description
1866	Overend, Gurney & Co.	UK	Collapse of bank led to financial panic and runs
1873	Jay Cooke & Company	US	Financial panic resulted in widespread runs
1893	Philadelphia and Reading Railroad	US	Bank runs followed the collapse of the railroad company
1893	Australian banking crisis	Australia	Bank runs and financial panic across Australian colonies
1907	Knickerbocker Trust Company	US	Panic triggered by failed stock manipulation
1929-1933	Various banks during the Great Depression	US	Economic downturn led to widespread runs
1933	Michigan Bank Holiday	US	Temporary closure of banks to prevent runs
1966	London bank runs	UK	Multiple banks experienced runs and liquidity issues
1980s-90s	Savings and Loan Crisis	US	Collapse of savings and loan institutions
2007	Northern Rock	UK	First UK bank run in decades after liquidity concerns
2008	IndyMac Bank	US	Major run on deposits after FDIC takeover
2008	Washington Mutual	US	Large-scale withdrawals before FDIC intervention
2008	BankWest	Australia	Rumors of financial instability led to increased withdrawals
2011	Bank of the Commonwealth	US	Collapse due to fraudulent activities
2011	Dexia	France	Concerns over exposure to Greek debt triggered deposit withdrawals
2012	Bankia	Spain	Financial instability led to widespread withdrawals
2013	Cyprus banking crisis	Cyprus	Bank runs due to a financial crisis and bailout measures
2015	Banca Popolare di Vicenza and Veneto Banca	Italy	Liquidity concerns led to deposit withdrawals
2018	Banco Popular	Spain	Financial instability resulted in a bank run and acquisition by Santander
2019	The Cooperative Bank of Cape Cod	US	Withdrawal concerns after regulatory issues
2019	AMP Bank	Australia	Withdrawal concerns amid ongoing misconduct revelations
2020	Municipal Credit Union	US	High withdrawal demand due to financial issues
2020	OneUnited Bank	US	Increased withdrawal requests during COVID-19 pandemic
2020	IOOF Holdings	Australia	Share price decline sparked withdrawal concerns
2020	Latitude Financial Services	Australia	COVID-19 impact led to increased withdrawal requests
2021	Greensill Capital	UK	Insolvency concerns led to funding withdrawal
2021	Credit Mutuel Arkea	France	Concerns over financial health led to withdrawals
2021	Greensill Bank	Germany	Liquidity issues and insolvency concerns resulted in deposit withdrawals
2021	Banco Espirito Santo	Portugal	Bank run due to financial instability and subsequent collapse
2003	Northern Rock	UK	Early signs of financial instability led to withdrawal concerns