Bank Holiday

AAA

DEFINITION of 'Bank Holiday'

Any business day during which commercial banks and savings & loans institutions are closed for business to the public, specifically at physical locations. These holidays usually coincide with federal holidays in the United States, but each country defines is own bank holidays.

Infrequently, a bank holiday can also refer to a day where there is an emergency bank closure to avert a bank run. This type of bank holiday occurred as a result of the Emergency Banking Act of 1933 during the Great Depression in the United States.

INVESTOPEDIA EXPLAINS 'Bank Holiday'

In the United States, scheduled bank holidays do not necessarily coincide with stock market or capital market holidays, although they do tend to be federal holidays. There will never be two consecutive business days that are scheduled bank holidays (during which banks are closed to the public.)

Most online banking systems will still allow access by customers even on bank holidays.

RELATED TERMS
  1. Bank Run

    A situation that occurs when a large number of bank or other ...
  2. Online Banking

    The performance of banking activities via the Internet. Online ...
  3. Deposit

    1. A transaction involving a transfer of funds to another party ...
  4. Depression

    A severe and prolonged downturn in economic activity. In economics, ...
  5. Emergency Banking Act Of 1933

    A bill passed during the administration of former U.S. President ...
  6. Broke The Buck

    When a money market mutual fund's net asset value (NAV) drops ...
Related Articles
  1. Tired Of Banks? Try A Credit Union
    Retirement

    Tired Of Banks? Try A Credit Union

  2. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  3. How To Reduce Holiday Debt
    Credit & Loans

    How To Reduce Holiday Debt

  4. 10 Great Investment Books For The Holidays
    Investing Basics

    10 Great Investment Books For The Holidays

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center