SVB Collapse Prompts Effort to Quash Bank Frenzy on Social Media

Silicon Valley Bank’s collapse has been called the first “Twitter bank run,” and banks and policymakers are scrambling to find ways to prevent the next one.

Tech executives and investors’ social media posts—including group chats, Slack messages and tweets from influential accounts—contributed to market anxiety that was followed by a massive amount of withdrawals that crippled SVB earlier this month.

Social media and digital banking technology developments enable information and money to flow faster than ever. And the issue has emerged as a prominent discussion point in recent days as banks and policymakers search for ways to catch up.

“That’s ...