EU Proposes to Freeze Accounts to Prevent Bank Run 

 

If there is a run on the bank, any bank in the EU, you better be among the first to get your money out.

Although it’s your money, the EU wants to Freeze Accounts to Prevent Runs at Failing Banks.

European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs, an EU document reviewed by Reuters revealed.

 

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bank run (also known as a run on the bank) occurs when in a fractional-reserve bankingsystem (where banks normally only keep a small proportion of their assets as cash), a large number of customers withdraw cash from deposit accounts with a financial institution at the same time because they believe that the financial institution is, or might become, insolvent.

Wiki.

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