Did social media cause the banking panic?

After the fall of Silicon Valley Bank, the idea of faster bank runs is understandably causing concern. (Image: Getty)

Wed, 05 Apr 2023

The banking turmoil that has sent a handful of American and European lenders to the wall in recent weeks has a new feature. Use of social media and messaging apps, which spread information at lightning pace to an ever-larger group of panickers, marks a break from past crises. Meanwhile, new digital-finance tools let nervous depositors withdraw funds as soon as the notion strikes them, whether from offices in San Francisco or ski slopes in Saint Moritz.After the fall of Silicon Valley Bank, the idea of faster bank runs is understandabl...

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