Bad banking news has many people fearing their life savings will suddenly vanish and has created a somewhat panic-ridden population. Questions are flying about pulling money from the bank in case it collapses, but that's the most counter-productive thing to do in this scenario. Keeping your money under your mattress is not the way to go!

According to Investopedia, a bank run is [1] "a situation in which numerous bank customers try to withdraw their bank deposits simultaneously and the bank's reserves are not sufficient to cover the withdrawals." So, the fear that a bank will become insolvent and results in a bank run, is the exact reason a bank could become illiquid. When it comes to your money, panic-induced decisions are rarely good ones.

Source [2]