FRANKFURT (Dow Jones) — Bundesbank President Joachim Nagel has warned of the dangers of a bank run through fake news in social media and has called for banking supervision to be extended to social media. “We must not rest on our laurels, we have to take a close look and sharpen blind spots in supervision,” Nagel told the editorial network Germany (RND).
The case of the Silicon Valley Bank showed that you have to get faster. “There, statements on social media helped to accelerate a bank run, i.e. a run on the bank.” The question is whether fake news could also trigger something like this.
In South Korea there is a banking supervisory task force that systematically monitors social media. They recognize early on when something like this is about to happen. “We could also think about that in Europe,” said Nagel.
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(END) Dow Jones Newswires
July 19, 2023 04:26 ET (08:26 GMT)