The central bank of European Union analyzed data and early warning indicators who have showed that some banks may experience a bank run. ECB has asked some banks to monitor activity on social media and detect early signs of bank run.
The financial problem where client rush to bank to withdraw cash and pull deposits at the same time it’s called (bank run). This specific banking crisis already happened in 2023 when Credit Suisse client withdraw more than 100 Billion Swiss francs.
This banking crisis appear to be the most persistent. The probability of a bank run is 50% the reason for the increased percentage is the economic situation and the fear of users of banking services. One of the recent events in 2023 was bank run of Silicon Valley bank and Credit Suisse who in March last year experience a banking crises, the same one who may be on the corner in 2024.
Growth of domestic private credit, increasing FDI inflows, rising money market rates, and increasing world GDP and inflation are common leading indicators of banking crises.
Many issues started to emerge and to scary customers who think that there deposits will be sub duct by their own bank.
While the probability of debt and currency crises decreases after a few quarters, there is still a great possibility of a banking crisis, which, if it occurs in Europe, would have catastrophic consequences for the economy, primarily of Germany.