# Bank Run In financial regulation, a bank run is the sudden withdrawal of [deposits](deposit.md) from a [bank](bank.md), which may result in the bank becoming insolvent. Bank runs where a common occurrence in United States in the market crash of 1929 and during the 1930s. Regulation and federal policy [deposit insurance](deposit-insurance.md) entirely eliminated this phenomenon in subsequent decades. ## References 1. Diamond, Douglas W., and Philip H. Dybvig. "Bank runs, deposit insurance, and liquidity." Journal of political economy 91, no. 3 (1983): 401-419. 1. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.