"The organization of a bank run has never occurred so far"


Yellow vests call for the massive withdrawal of bank money for Act IX of their mobilization. This well-known economic process is called a "bank run" or "panic bank" but the success of such an initiative is unlikely.

"A referendum of tax collectors". In the absence of a Citizen Initiative Referendum (RIC), Yellow Vests are determined to be heard through other forms of unprecedented mobilizations. The idea of ​​creating a "bank panic" movement has emerged while Act IX of the mobilization is to be held on Saturday, January 12th.

"We are going to act IX to scare this state legally, without any violence.We all knew that the powers of the country are not in the hands of the government but those of the banks.If the banks weaken, the State weakens immediately, "says the user, named Tahz San in his call on the YouTube platform.

He calls for massive cash withdrawals from banks in two waves. A first wave Friday, January 11 from 19 hours and a second in the morning of Act IX, Saturday, January 12, between 8 am and 12 pm. His goal: to create a "bank run", a bank run, to shake the power.

The reasoning is simple: no institution holds cash corresponding to the deposits of its customers. A bank unable to cope with withdrawal requests (which would increase as distributors dry up) is vulnerable to the inability to pay its operating costs. However, if a bank collapses, the whole sector falters, forcing the government to react.

The call was relayed on 7 January by Maxime Nicolle, one of the most mediatized figures of yellow vests. "We will return to the polls but through the distributor," he promises.

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"There is little risk that it works," said Christophe Dansette, economic columnist at France 24, based on estimates given by the Bank of France and the People's Bank. First, because French deposits amount to 1,500 billion euros. Of these deposits, those on current accounts amount to 390 billion euros. It should therefore that each French withdraws 5,800 euros. This seems very difficult if not impossible, as cash withdrawals are capped. "

Christophe Dansette notes that none of the banks he contacted seem particularly worried by the threats of mobilization of yellow vests: "They told me not to be on alert and not to have taken any special measures."

"The organization of a banking panic has never existed for the moment," notes the columnist of France 24, despite several attempts, the best known in France remains the call of former footballer Eric Cantona in 2010, to shake the financial system.

Historically, the "bank run" that shook the banking system is still the result of disorganized panic movements. The first in history goes back to 1797. At that time, the English fear a French invasion and thousands of customers rush into their banks, forcing them to cease operations.

During the subprime crisis in 2008, the same scenario took place in Great Britain. "In front of the rumor of bankruptcy of Northern Rock, thousands of customers had rushed on the distributors of this bank, giving rise to hallucinating images", recalls Christophe Dansette. "The bank could not resist and London was forced to nationalize it."

To this unprecedented mobilization attempt will be added a set of yellow vests demonstrations everywhere in France, causing the authorities to fear a "more radical" act.