«Bank Panic» happens when many clients withdraw their money from banks because of a lack of trust and fear that they will not return the cash. This massive withdrawal of deposits can happen in contexts of financial crisis or changes in the economic policy of a country.
This panic can destabilize a bank to the point that its system collapses due to a lack of liquidity and it has to face bankruptcy.
The bankruptcy of an important financial institution, can produce a contagion effect to other big institutions, affecting the stability of the global international financial system, which is known as systemic risk.
Example:
“Thousands of depositors, panicked by rumors, lined up today in the steamy August heat to withdraw their money from the venerable Standard Chartered Bank, one of two banks that issue Hong Kong currency.”
Source: www.nytimes.com/1991/08/10/business/panic-and-run-at-hong-kong-bank.html
Videos (links):
Bank panic: https://www.youtube.com/watch?v=xa75BfmXQH4
Systemic risk: https://www.youtube.com/watch?v=O6rl_ImpGkM