How can changes in reserve requirements by the central bank influence the likelihood of a bank run during periods of economic instability?

Reserve requirements are the amount of money that banks must keep on hand and not lend out. When the central bank changes these requirements, it can affect how much money banks can lend to customers. If the central bank lowers reserve requirements, banks have more money to lend, which can encourage borrowing and spending. However, in times of economic instability, if people feel uncertain about the bank's safety, they might rush to withdraw their money, leading to a bank run. For example, if a bank has a lower reserve requirement and many customers withdraw their funds at once, the bank could run out of cash, making the situation worse and increasing the likelihood of a bank run.