Russia’s Bank Run — When Confidence Begins to Crack
A bank does not actually have everyone’s money sitting in a vault waiting to be returned. The entire system functions because everyone assumes they will not demand their money at the same time. Once that confidence begins to crack, the numbers on a balance sheet become secondary because people want
Source: Armstrong Economics
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DW NOTE
Russia has been functionally bankrupt since the 2014 sanctions, operating on reserve drawdowns and energy export proceeds it can barely remit through the banking system. The only surprise is that depositors waited this long to notice. A bank run does not reflect new fragility — it reflects old fragility finally priced in by people who can no longer afford to pretend.