Digital Panic - Understanding the Dynamics of Bank Runs and Regulations in the Digital Sphere
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| Format: | Thesis |
| Kulcsszavak: | bank panic bank run digital bank runs digitalization financial crisis financial regulations Great Depression Silicon Valley Bank |
| Online Access: | http://dolgozattar.uni-bge.hu/56595 |
| Abstract: | The thesis explores the evolution of bank runs in the digital age by examining how digitalization has transformed the nature of these crises and shaped regulatory responses. I analyze historical events such as the Great Depression alongside contemporary examples like the Northern Rock and Silicon Valley Bank collapses, to highlight the shift from physical queues to digital withdrawals and the role of social media in exacerbating panic. By evaluating regulatory frameworks and through a comprehensive literature review the thesis provides insight into navigating the challenges of financial stability in an increasingly interconnected and digitalized global economy.The conclusion of the paper is the following: bank runs in the digital age exhibit different triggers and patterns compared to historical occurrences; the interconnectedness of the global financial system in the post-digitalization era results in a greater international impact of bank runs compared to the localized effects in the pre-digital era; and the regulatory response to bank runs has evolved in the digital era to mitigate their impact.The path forward requires a commitment to continuous innovation and collaboration. By embracing these principles, the financial industry and regulatory bodies could navigate the challenges of the digital era, turning potential vulnerabilities into opportunities for growth and stability. |
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