History repeats itself, once again
Central banks around the world had assured us that banks would no longer fail like they did during the 2008 Banking Crisis, but here we are again with yet another very public collapse (and a not so well publicised collapse of Signature Bank NY on 12th March 2023). Of course, the circumstances are different to the 2008 Banking Crisis days, and there is probably a low risk of the banking system collapsing, but the story is compelling.
As it has been well publicised, Silicon Valley Bank (SVB) was declared bankrupt on Friday, 10th March 2023. They were the 16th largest bank in the US. What allowed a bank of such scale to fail so rapidly? The key distinction lies in the prevalence of social media, which enabled the downfall to play out in real-time on Twitter within a single day.