It seems people in Latvia have lost faith in the banks and at present Swedbank is being emptied of its cash from ATMs. Rumors or Fact?
People in Riga are running to the ATMs trying to clear out their savings at Swedbank terminals, caused by what appear to be unfounded rumors across the web. After Krajbanka went under it is no suprise that the Latvian public have concerns about any rumors.
There is a slight issue with this though. If everyone removes money from the banks, then potentially the bank can get into real trouble. Known as a ‘Run on the Bank’ or a ‘Bank Run’, this phenomenen can snowball out of control. As people begin to have fears in their banks, they remove deposists, others see this and like pigeons they follow each other. It can reach a point where so many people have removed their deposits that the bank enters a real crisis.
So people of Latvia, lets not bring down another bank in less than a month. After all, it could just be rumors.