But what might be a boon for savers in search of safety might be a bane for banks, as this makes a bank run potentially even easier. In taking deposits away from banks, it also reduces their ability to engage in maturity and liquidity transformation and make loans.
Extreme situations have been avoided, thanks to the action taken by major central banks (in the form of finetuning operations to restore normal liquidity conditions) and by governments, in particular those of the United States and the United Kingdom, aimed at averting the risk of a broader systemic crisis. 2.