Central Banking

BoE economist discusses danger of ‘virtual’ bank run

Faster payments and new technology allow customers to drain banks “instantly”, official says

cash-running-web

The digitalisation of banking may mean a bank run can occur without customers having to leave their homes, a recent blog post by the Bank of England argues.

In his examination of whether the UK is more or less likely to experience another bank run, Stephen Clarke, an economist in the BoE’s customer banking division, proposes a scenario where customers could drain their accounts through online transfers.

“Because no physical cash need change hands, moving money between banks need not take

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