Bank Runs Begin In Ukraine As Russia's Largest Bank Halts Lending

Six months ago a "glitch" halted all ATM withdrawals, and Credit and Debit card transactions for Russia's largest bank but today, the CEO of the huge bank has no such "glitch" to blame:

  • *SBERBANK SEES RUN ON ITS BANK MACHINES IN UKRAINE, GREF SAYS
  • *UKRAINE SITUATION IS PRESSURING RUBLE: SBERBANK CEO GREF
  • *SBERBANK HALTS LENDING IN UKRAINE, GREF SAYS

We suspect that whether an agreement is in place or not, this will continue.

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Cristine Wellington 10 years ago Member's comment
Thank you for posting it here. This is really interesting! A bank run occurs in a fractional reserve banking system when a large number of customers withdraw their deposits from a financial institution at the same time and either demand cash or transfer those funds into government bonds or a safer institution because they believe that the financial institution is financially ruined.That is why a definite direction and greater defense against bank runs are perhaps the only things that will keep customers from aggrandizing their financial problem. I wish I had money so I can withdraw it from the bank now, but I don't have any since I only have the cash advance which helped me during hard economic times.