Social media raises bank run risk, fueled Silicon Valley Bank’s collapse, paper says

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.