Regulators grapple with the risk of bank runs in the age of social media

Venture capital firms warned on Twitter that Silicon Valley Bank was in danger, heightening awareness of vulnerability

Silicon Valley Bank may have been unique vulnerability to a social media-driven bank run, given its highly concentrated customer base of technology and venture capital entrepreneurs who mingled in the same circles. Photo: Getty Images

Hannah Lang

The speed at which depositors fled Silicon Valley Bank this month – withdrawing $42bn (€40bn) in 24 hours – has left authorities confronting a new risk: the social media-driven bank run.