Fast and furious: how digital bank runs challenge the banking-crisis rulebook

For those hoping that 2023 would bring some respite after the pandemic and war in Ukraine, there has been a rude awakening. Pressured by the fastest monetary tightening on record, some corners of the financial system have cracked. A stream of crypto bankruptcies led ultimately to the demise of crypto-involved Signature Bank of New York (SBNY). Then, in what has been labelled a “Lehman moment for technology”, came the collapse of Silicon Valley Bank (SVB), lender to startups and their venture capital backers. Tensions spilled over to Europe and claimed Credit Suisse, killed, according to its Chairman, by a social media storm.

These bank failures had major differences. But they also share two common traits that raise far-reaching questions.

 
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