If a Bank run

[lightand]

If there were to be a possible bank run

What happens?
Thankfully never lived through one. And maybe I should post this on preppers. But I think the implications are bigger than prepping!
But I dont really know what the implications are.

I know there is the £85,000 back up or whatever it is. But I cant help thinking, if multiple Banks fail, it would be a long time before things would be back to any kind of normal. It would be a long time before ordinary people got the money back.

It isn't difficult. Spread your money out between different banks.

But it is extremely unlikely to happen.

Interested to know why you think the biggest banks in the world will collapse, OP?
What do you think the trigger will be?
In 2008 it was all linked to banks heavily invested in MBS that essentially were not worth what they thought they were worth leading to a lack of liquidity in these banks.
So many regulatory measures have been put in place following that to stop that scenario happening again.
I do hope you are not basing your concerns on rabbit hole conspiracy theories you have read on twitter/Facebook etc

I think the trigger will be loss of confidence.
It doesnt/wouldnt/wont matter if people act rationally or not.

Banks won't fall like dominoes. You're worrying about something you don't seem to know anything about or understand. Your worry is completely unnecessary.

(I work in banking and have done for 20+ years)

But if there really is a run, withdrawals won’t be done electronically because the transfer systems (e.g. CHAPS, BACS and Faster Payments system) will be switched off.

Also where are you going to transfer your money to in the event of a systemic collapse? Only actual cash will have value and that’s only because the Bank of England says it does…

But what is the loss of confidence based on?
I can't see that happening at all.
Where are you planning on moving your cash to?
How do you plan on buying things?
No offence, but I think you have been looking at some crazy conspiracies on the internet.

From the Bank of England website

The findings show that today a major UK bank could enter resolution safely: remaining open and continuing to provide vital banking services to the economy. With shareholders and investors, not taxpayers, first in line to bear the costs. This overcomes the ‘too big to fail’ problem of the past.

I read this as meaning there shouldn't be a need for a run on a bank.

edu.bankofengland.co.uk/financial-stability/resolution/resolvability-assessment-framework/resolvability-assessment-of-major-uk-banks-2022

A loss of confidence in what? The banks? We’ve already witnessed this in 2007/8. The government stepped in to support and guarantee the banks deposits and stabilise their liquidity.

Money is just government-issued currency not backed by any physical commodity of value but by the stability of the issuing government. It can issue more if it needs to.