Now, you may be wondering — what is a bank run? 

The definition of a bank run is when a large number of people rush to withdraw their money from a bank at the same time, fearing the bank might collapse. Ironically, this sudden panic can actually cause the bank to run out of cash and fail — even if it was financially stable before.

» LEARN MORE: How to switch bank accounts in Singapore?

Good news: It’s very, very unlikely.

Experts say Singapore’s banks are very safe. We have strict rules, banks are careful with risks, and they are required to keep extra cash for emergencies.

In fact, Channel NewsAsia points out that Singapore’s financial system is designed to avoid the kind of vulnerabilities that led to those bank failures abroad.

So, unless something truly extraordinary happens, a bank run in Singapore remains a remote risk.

» Should you have more than one savings account?

The Singapore Deposit Insurance Corporation (SDIC) administers the Deposit Insurance (DI) Scheme, which automatically covers your deposits of up to $100,000 per depositor and bank. No extra fees and paperwork are required. As long as your bank is a DI Scheme member (and pretty much all of them in Singapore are), your money is protected.

» MORE: What is a deposit?

Important: Cryptocurrencies aren’t covered. If you're holding Bitcoin or investing in crypto platforms, that money isn’t protected under SDIC. Whether a "crypto bank run" could happen remains an open question.

» Understanding cryptocurrency: Pros, cons and how it works

It wasn’t a textbook bank run — but it certainly felt like one.

If you’re anything like us, the first thing that popped into your head when you heard "Chocolate Finance" was Henry Golding — and honestly, we don’t blame you. Unfortunately, that’s not what we’re here to talk about.

In March 2025, Chocolate Finance suspended instant withdrawals after seeing a surge in requests. Instead of calming customers down, the move caused widespread panic. People rushed to pull out their money, worried the fintech company would collapse — even though Chocolate wasn’t a traditional bank.

This panic resembled a bank run: fear caused more fear, creating a stampede to withdraw.

Now, compare this to MoneyOwl’s closure in 2024. MoneyOwl arranged with iFAST Financial to safely manage customers' funds, ensuring a smooth exit — no panic, no drama.

The key difference? Transparency and planning. Panic thrives in uncertainty, and Chocolate Finance’s handling created exactly that. When companies communicate clearly and plan ahead, panic can be avoided. When they don’t, chaos can happen very fast.

Now for a bit of financial history — and yes, it happened right here in Singapore.

In 1995, Barings Bank, a 233-year-old British financial institution, collapsed after a single rogue trader, Nick Leeson, racked up more than US$1.4 billion in hidden losses.

Here's how it unfolded:

• Barings Bank had been actively trading on the Singapore International Monetary Exchange (SIMEX) (now part of the Singapore Exchange, or SGX).

• Leeson was handling trades and overseeing settlement operations — meaning he could easily hide his losses without immediate detection.

• A sudden freefall in the Nikkei stock index worsened his already massive losses.

• Eventually, the losses became so large that Barings could no longer cover them — leading to its collapse.

• The bank was sold to Dutch bank ING for a symbolic £1.

We don’t recommend following in Leeson’s footsteps unless you plan on serving 6.5 years in prison and having a film made about your crimes starring Ewan McGregor and Anna Friel.

Important distinction: Barings didn’t collapse because customers withdrew their money. It failed because of internal mistakes and a lack of proper supervision — showing that sometimes the danger comes from within.

» What is a savings account and how does it work?

Singapore’s banking system is exceptionally robust, supported by strong regulations and protection schemes such as the SDIC. While it is wise to stay informed, there is no cause for panic — your savings in Singapore are safe and sound.

Key points to remember:

• Bank runs occur when large groups of depositors panic and attempt to withdraw their money simultaneously.

• Singapore’s banks are highly regulated, financially sound, and well-prepared for market shocks.

• Deposits are automatically insured up to $100,000 per depositor, per bank, under the SDIC.

• It’s important to verify if your savings are protected, particularly when using fintech platforms or investing in cryptocurrencies, which may not be covered.