The European Central Bank warns that social networks can intensify panic and contribute to the collapse of banks in crisis situations, as in the case of Silicon Valley Bank.

The ECB analyzed data from 110 banks and found that social media, by amplifying panic, can accelerate extreme deposit outflows during periods of stress. The increased use of online banking services has led to an increase of nearly 6 percentage points in extreme deposit outflows. Additionally, supervisory authorities should monitor these outflows more frequently to manage risks. Digitalization facilitates the transfer of deposits to alternatives with higher yields.