Social Media as a Bank Run Catalyst

In March 2023, Silicon Valley Bank succumbed as its depositors fled, with these and other stakeholders signaling the bank’s perceived financial troubles through social media. The momentum was so swift and powerful that bank executives could not forestall the financial implosion. In a thoroughly researched and well-structured analysis, a group of academics explains how Twitter users created a cascading effect that turned into an unprecedented bank run. The professors also show how social media could put other financial institutions at risk. Investors, bankers and policy officials will find this a robust examination of the entanglement of bank failure and social media.