Silicon Valley Bank's collapse linked to social media's bank run risk.

1 min read
Source: CNBC
Silicon Valley Bank's collapse linked to social media's bank run risk.
Photo: CNBC
TL;DR Summary

A working paper co-authored by university professors has argued that greater exposure to social media amplifies bank run risk, citing the sudden collapse of Silicon Valley Bank in March as an example. The paper examined original tweets that included a financial institution's cashtag and found that the intensity of Twitter conversation about a bank predicted stock market losses at the hourly frequency during the bank run period. The authors warned that other banks could face similar risks due to open communication by depositors via social media.

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