Finance

Citi CEO Fraser Warns Mobile Money is ‘Game Changer’ for Bank Runs

‘A Couple of Tweets’ and a quick end to Silicon Valley Bank
Fraser says only a few banks are hurting, sees no wider crisis

WATCH: Citi CEO Fraser says consumers’ ability to move millions of dollars with a few clicks of a button on their mobile apps is a “game changer” for how bankers manage and regulators respond to the risk of bank runs. Source: Bloomberg

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By Jennifer Surane

March 23, 2023 at 1:23 AM UTC

This article is for subscribers only.

Citigroup Inc. Chief Executive Officer Jane Fraser said mobile apps and consumers’ ability to move millions of dollars with a few clicks of a button mark a sea change for how bankers manage and regulators respond to the risk of bank runs.

Fraser said the fast demise of Silicon Valley Bank also made it difficult for banks to assess and prepare bids for its assets. Speaking just two weeks after the California-based lender collapsed under the weight of tens of billions of withdrawals by its venture capital clients, Fraser said her firm hopes a buyer will emerge in the coming days.