A bank run is an attempt by large numbers of depositors to simultaneously withdraw their deposits. A run can cause a bank to fail if it is unable to meet redemption requests. Deposit insurance protects bank depositors against the loss of their deposits in the event of bank failure. In the United States, the Federal Deposit Insurance Corporation (FDIC) insures commercial bank deposits up to $250,000 per depositor per institution. Deposit insurance mitigates the risk of bank runs by removing the incentive to withdraw one's money from a troubled bank. But uninsured deposits have increased in recent years, reaching 46% ... (full story)