Economy & Markets
2023-07-21
Donato Masciandaro
Dangerous Liaisons: Digital Bank, Social Networks, and Financial Instability
A recent empirical analysis has shown that the failure of Silicon Valley Bank (SVB) was accelerated and caused by the perverse intertwining of social networks and access to digital banking services. To prevent customers from becoming unwitting and individual triggers for collective fires, it is necessary to act in advance and modify the regulatory architecture of the sector.