What where the bank runs and failures?

Bank runs occur when a large number of customers withdraw their deposits simultaneously, fearing the bank will become insolvent. This can lead to bank failures, as banks typically do not keep enough cash on hand to cover all deposits, relying instead on loans and investments. Notable historical examples include the Great Depression in the 1930s, when numerous banks collapsed due to a loss of confidence. Such events highlight the importance of public trust and regulatory measures in maintaining financial stability.