What are the causes of a bank run?

A bank run typically occurs when a large number of depositors withdraw their funds simultaneously due to fears about the bank's solvency. This panic can be triggered by rumors, negative news about the bank's financial health, or broader economic instability. Additionally, a lack of confidence in the banking system as a whole can exacerbate the situation, leading depositors to believe that their savings are at risk. Once a few people start withdrawing their money, it can create a domino effect, prompting more withdrawals and potentially leading to the bank's collapse.