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From:
CFA Institute Enterprising Investor
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Bank Runs and Liquidity Crises: Insights from the Diamond-Dybvig Model
https://blogs.cfainstitute.org/investor/2025/02/24/bank-runs-and-liquidity-crises-insights-from-the-diamond-dybvig-model/
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Tagged with:
economics
philosophy
financial statement analysis
drivers of value
bank risk
This blog explores the mechanics of bank runs -- why they happen even in the absence of fundamental financial distress, and how central banks can intervene to stabilize the system.
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