Panic Withdrawal report based on current & previous analysis

1. Shanjida Akter
Sajjad Mahmood Bin Shafiq
Nafees Sikder
Md. Shajidul Islam Chowdhury
Md. Ahsanul Karim
Marjuk Mahbub Bhuiyan

2. A panic withdrawal occurs when large
groups of depositors withdraw their money
from banks simultaneously based on fears
that the institution will become insolvent.
With more people withdrawing money,
banks will use up their cash reserves and
ultimately end up defaulting.
A panic withdrawal is typically the result
of panic rather than true insolvency.
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3. 3
● Recently people in Bangladesh panicked and
started withdrawing money from their bank
accounts.
● For the upcoming food crisis people want to
be on the safest side and hold their money on
hand.
● Banks don’t keep much money on hand.
Maximum amount they lend who need funds.

4. Primary Reasons
Security breach – online hacking or
internal theft
Lack of liquid assets (treasury bills,
prepaid expenses, mutual funds etc.)
Economic Inflation
Unnecessary rumors
Unexpected Situations
Poor cash management
Reduction in cash flow
Dramatic changes in stock market
Internal information leaks about bank
status
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5. 5
 The banks would experience a
bank run.
 Bankruptcy
 A banking panic or bank panic
 A systemic banking crisis

6. • Government needs to reform "Bank Deposit
Insurance Act 2000" law.
• Banks need to manage their liquidity properly.
• Having an insurance policy in a term to pay
their payables if ever bankruptcy occurs.
• Strictly following laws & policies to avoid any
sort of bank-run situation.
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