A new paper has revealed that social media can play a role in increasing the risk of a bank run, which ultimately led to the collapse of Silicon Valley Bank.
The paper outlines how social media can be used to spread misinformation and panic, leading to a surge in withdrawals from banks.
This can cause a bank run, where a large number of customers withdraw their money from the bank, leading to a collapse.
Implications of Social Media Bank Runs
The paper warns that social media can be used to spread panic and misinformation, leading to a surge in withdrawals from banks.
This can cause a bank run, where a large number of customers withdraw their money from the bank, leading to a collapse.
The paper highlights the need for banks to be aware of the potential risk posed by social media and to develop strategies to mitigate this risk.
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