In a surprising twist, the European Central Bank is turning to social media to keep tabs on banking sentiments. It’s like giving banks a pair of social media glasses to see how people feel about their money. This shift comes after Silicon Valley Bank and Credit Suisse took a tumble last year, making regulators buckle up and pay closer attention to banks’ financial health.
Picture this: regulators are now not just looking at how much money banks have but also checking what people are saying online. Join us on this journey to uncover how social media insights might just become the secret sauce in keeping our financial world steady.
JUST IN – European Central Bank asks some lenders to monitor social media for early signs of bank runs — Reuters
— Disclose.tv (@disclosetv) January 24, 2024
ECB keeps close eye on liquidity after bank runs in 2023
* Regulators also looking at individual deposit bases – executive
* Social media can amplify shocks to liquidity
LONDON, Jan 24 (Reuters) – The European Central Bank has asked some banks to closely monitor activity on social media to detect a worsening in sentiment which could lead to a deposit run, two banking executives with knowledge of the request told Reuters.
European regulators have sharpened scrutiny of banks’ liquidity after the collapse of Silicon Valley Bank and Credit Suisse in March last year, the people said, requesting anonymity because the discussions are private.
h/t egads!