Why bank runs are suddenly making a comeback in the United States

Bank failures are rare, but the recent collapse of two institutions has shattered a two-year period of stability. This video examines the sudden failure of Silvergate and Silicon Valley Bank, exploring why these events are no longer just historical relics.

For years, bank runs were considered a phenomenon of the past. The United States had not seen a bank failure since 2020, when a small Kansas-based institution collapsed. This streak of stability ended abruptly in 2023.

The video details the back-to-back failures of Silvergate, a crypto-focused bank, and Silicon Valley Bank. These events highlight the renewed vulnerability of the banking sector, marking a significant shift from the relative calm of the previous two years.

Source: Bank Runs! What's Going On?