The Bank Run of 2023 Could Easily Happen Again
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Regulators have yet to address the system’s vulnerability to sudden depositor withdrawals. The demise of Silicon Valley Bank in March 2023 exposed weaknesses in the banking system. Depositors pulled their money faster than assumed by liquidity coverage ratio requirements. The Federal Reserve couldn't provide sufficient emergency loans due to insufficient collateral. Uninsured depositors had reason to run as they couldn't be sure of government bailouts. Regulators have focused on increasing loss-absorbing capital at large US financial institutions.



https://www.bloomberg.com/opinion/articles/2024-04-01/silicon-valley-bank-the-federal-reserve-and-bank-runs