What's a bank run in 100% reserve banking? There's no such thing. Bank runs are a consequence of fractional reserve banking. Saying that this is far-fetched doesn't convince me otherwise.
A bank run by definition occurs because depositors fear that the bank doesn't or won't have enough in reserves to redeem their deposits.
A bank run by definition occurs because depositors fear that the bank doesn't or won't have enough in reserves to redeem their deposits.
You yourself said that 100% reserve banking in respect to reserves refers only to demand deposits, so in no case it can preserve a bank run when people request back all their deposits (term deposits as well as demand deposits), even they may be fined. In my country a depositor can at any time request back his deposit (loosing the accumulated interest in most cases)...
If your deposit is payable on demand, then it is by definition a demand deposit. At least, that's what I was under the impression of when I made my comment about demand deposits. Am I wrong about that?
If some countries have goofy laws which force banks to consider all deposits to be payable on demand, then that sounds like a bad law which ought to be eliminated if we want to have a sound banking system.
In any case, you haven't answered my question. What's a bank run in 100% reserve banking? There's no such thing.
