According to the President of the Bundesbank, fake news in social media could trigger a bank run. This risk should be counteracted in a targeted manner at an early stage.
Bundesbank President Joachim Nagel has warned of the dangers of a bank run through fake news and has suggested extending banking supervision to social media. The supervisors could then recognize at an early stage whether there is a risk of a so-called bank run, Nagel told the editorial network Germany.
In a bank run, large numbers of savers pull their money from a bank at the same time. In the worst case, the financial institution could then default.
The case of the Silicon Valley Bank showed that you have to get faster, said Nagel. There, statements on social media would have helped accelerate a bank run. The question is whether fake news could also trigger something like this. The US bank collapsed in March.
Nagel said he had heard from a colleague in South Korea that a banking supervisory task force was systematically monitoring social media there. They can then see early on if something like this is emerging. “We could also think about that in Europe,” he said. “We mustn’t rest on our laurels, we have to take a close look and sharpen “blind spots” in supervision.”
Source: Stern
