When trying to stop bank runs, the problem with suspension of convertability/a bank holiday is
- If you suspend convertibility for everyone (as governments often do) some people will suffer greatly
- You have to suspend just the right amount: too many, and there's a bank run, too few, and people suffer
- Unlike deposit insurance, if you don't clear up the underlying cause of fear that caused the run, it can easily return after the suspension ends
- All of the above