Finance
Mobile Bank Apps Helped Kill SVB and Pose Risk to Others, Regulator Says
- Acting OCC head warns outflows could increase in mobile age
- Apple, Amazon finance push should be closely monitored: Hsu
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Mobile apps that facilitated the rapid withdrawal of billions of dollars of deposits in just hours at Silicon Valley Bank highlight a new risk for banks’ liquidity planning, according to a top US regulator.
To comply with current regulations, banks assume that retail deposits will run off at a rate of roughly 5% over a 30-day period, but customers’ ability to instantly move their money means outflows could be much higher in the future, Acting Comptroller of the Currency Michael Hsu said Wednesday at a summit in Raleigh, North Carolina, hosted by FDX, a nonprofit that creates standards for financial-data sharing.