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Financial Panic Definition


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Financial Panic

A self-fulfilling prophecy. If people believe that the bank will be unable to pay, they will all attempt to withdraw their money. This in itself will ensure that the bank cannot pay, and it will go bankrupt.

Related Definitions:
Financial Assets

Financial Distress

Financial Gearing

Financial Intermediaries

Financial Intermediary

Financial Leverage

Financial Management Rate of Return

Financial Panic

Financial Risk

Financial Securities

Financial Services Authority

Financial Slack

Financial Solvency

Financial Times Stock Exchange

Pecking Order Theory of Financial Gearing

Wholesale Financial Markets



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