The only reason for a bank run is to believe that the bank is at risk of bankruptcy and subsequently withdraws a large amount from the bank’s demand deposit account. In other words, whether the risk of bankruptcy is real or perceived does not necessarily affect the outcome of the bank run. As more and more customers withdraw funds due to fear, the real risk of bankruptcy or default increases, which will only lead to more withdrawals. Therefore, bank runs are more a result of panic than real risk, but it may simply be the real reason why fear may quickly lead to fear. Uncontrolled bank runs can lead to banking panic or banking panic when involving multiple banks, the most serious of which can lead to a recession. Banks can avoid the negative effects of bank runs by limiting the amount of cash that customers can withdraw at one time, temporarily withdrawing withdrawals entirely, or borrowing cash from other banks or central banks to meet demand. Today, there are other provisions to prevent bankruptcy and bankruptcy. For example, the bank’s reserve requirements have generally increased, and the central bank has organized to provide fast loans as a last resort. Perhaps the most important thing is to establish a deposit insurance plan, such as the Federal Deposit Insurance Corporation (FDIC), which was established during the Great Depression to deal with bank failures that exacerbate the economic crisis. Its purpose is to maintain the stability of the banking system and encourage a certain level of confidence and trust. Insurance still exists today.