Banks Must Prepare for a High-Speed Run on Deposits: Editorial

It’s been more than three years since Silicon Valley Bank lost a quarter of its deposits in a day, kicking off a string of bank rescues. The shocking speed of that run was attributed, in part, to the rapid spread of information on social media and the efficiency of digital banking. Future panics could unfold even faster. Policymakers ought to stop debating the risks and erect some common-sense guardrails.

Advances in technology are only making it easier and more attractive for depositors to withdraw their funds from banks. Artificial intelligence tools may soon be able to shift money around automatically ...