Subsequently, there were runs on a number of unlisted property trusts operated by other non-banks, with investors seeking to withdraw their funds prior to the periodic (and downward) reduction in unit prices. These runs eventually spread to trusts operated by banks.
This led to fears that suspensions in these bank-operated trusts would spark a generalised loss of confidence in the banking system, which at the time was already under some strain. In response, the Australian Government announced a 12-month freeze on all redemptions from unlisted property trusts.