bank walk

After the collapse of Silicon Valley Bank (SVB), many commentators have pointed fingers at social media, responsible for accelerating the bank run that killed SVB. Less attention has been dedicated to the role mobile banking has played not only in SVB’s bank run but also in the preceding massive exodus of deposits from the banking sector. While this exodus of funds from banks took place more slowly — more akin to a bank walk than a bank run— it is equally, if not more, momentous for the banking system.

Destabilizing Digital “Bank Walks” - ProMarket Naz Koont, Tano Santos and Luigi Zingales 2023