G-7 eyes responses for rapid Silicon Valley Bank-type failures

U.S. considers stronger capital and liquidity rules for midsize lenders

FDIC representatives speak with customers outside Silicon Valley Bank headquarters in Santa Clara, California, on March 13. © Reuters

MASAYA KATO, Nikkei staff writer

May 9, 2023 01:10 JST

TOKYO -- The Group of Seven leading industrialized nations intend to craft plans for addressing bank runs of the type that led to the collapse of Silicon Valley Bank, Nikkei has learned.

A more robust response to bank runs is seen as necessary when rumors can spread through social media and deposits can be withdrawn instantly via internet banking.