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Banks should consider social media in their liquidity risk, says report

The narrative that the internet causes bank runs lacks evidence, say some experts, but regulators are looking at the issue

by Barbara Pianese

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Banks should consider social media in their liquidity risk, says report

Banks should monitor social media as part of their liquidity risk management, said S&P Global Ratings in a report published at the end of February.

The report noted that bank failures in 2023, such as the collapse of Silicon Valley Bank, were often characterised by substantial and rapid deposit outflows exacerbated by negative social media.

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Barbara Pianese

Barbara Pianese is the Latin America editor at The Banker. She joined from Mergermarket, where she spent four years covering mergers and acquisitions across Europe with a focus on the consumer sector. She holds an MA in International and Diplomatic Affairs from the University of Bologna having studied in Brazil and France as well.