---
title: "The Financial System Is Going 24/7. Is It Ready for a Bank Run?"
description: "Stablecoins, tokenised assets and instant settlement promise always-on finance. Explore the liquidity, redemption and systemic risks that must be addressed."
url: https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk
---

Digital Assets & Finance · 5 November 2026· 16 min read

# The Financial System Is Going 24/7. But Is It Ready for a Bank Run?

Tokenised assets, stablecoins and instant settlement are changing the speed of finance. The harder question is whether liquidity, governance and safeguards can keep up.

By [Dr. Jovian Tan](https://joviantan.com/about) ·Published 5 November 2026

[![Illustration titled The Financial System Is Going 24/7. But Is It Ready for a Bank Run? with the line As finance goes always-on, can liquidity, trust and regulation keep up? A glowing globe circled by a clock-like arrow stands beside a columned bank building, above glass panels holding coins, a house, gold bars and a certificate](https://joviantan.com/_img/images/insights/financial-system-24-7-bank-run-liquidity-risk-1920.webp)

View the image full size](https://joviantan.com/images/insights/financial-system-24-7-bank-run-liquidity-risk.png) 

Illustration, not a photograph.

**In this article**

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#introduction-the-next-bank-run-may-not-wait-for-monday)Introduction: the next bank run may not wait for Monday

For generations, financial markets were constrained by operating hours, settlement cycles, payment cut-offs and the practical limits of moving money. Those constraints were inconvenient, but they also created time: time to reconcile positions, source liquidity, contact counterparties and respond to stress.

That world is changing. Stablecoins move across blockchain networks outside conventional banking hours. Tokenised securities are beginning to support more continuous trading and settlement. Smart contracts can transfer collateral, trigger margin calls and liquidate positions automatically. Financial institutions are exploring shared ledgers that compress processes which once took days into much shorter windows.

The promise is compelling: faster settlement, fewer intermediaries, improved transparency and more efficient use of collateral. Yet speed is not the same as resilience. A system that can transfer value at any hour must also be able to provide liquidity, process redemptions, resolve disputes and manage failures at any hour.

The issue is not that 24/7 finance inevitably causes bank runs. It is that continuous markets can expose weaknesses faster, transmit stress through new channels and reduce the time available for human intervention. The question for regulators and market participants is whether the safeguards are being modernised at the same pace as the technology.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#executive-summary)Executive summary

- **Digital speed can accelerate withdrawals, but it does not create the underlying weakness.** Concentrated funding, poor asset-liability management, weak governance and loss of confidence remain central causes of runs.
- **The 2023 Silicon Valley Bank episode is a warning.** [California's DFPI](https://dfpi.ca.gov/press_release/california-dfpi-announces-results-from-review-of-the-supervision-and-closure-of-silicon-valley-bank/) reported approximately $42 billion in withdrawal requests in one day, while the [Federal Reserve](https://www.federalreserve.gov/publications/2023-April-SVB-Evolution-of-Silicon-Valley-Bank.htm) documented the bank's concentrated depositor base, uninsured funding and long-duration securities exposure.
- **Tokenisation changes the mechanics of liquidity.** Atomic settlement and programmable collateral can reduce settlement risk, but can also make liquidity needs immediate and connect markets more tightly.
- **Stablecoins add cross-border redemption and reserve risks.** The [Financial Stability Board's October 2026 note](https://www.fsb.org/2026/10/global-stablecoin-arrangements-cross-border-vulnerabilities-and-financial-stability-monitoring/) highlights the cross-border and cross-sector structure of global stablecoin arrangements.
- **24/7 trading does not mean 24/7 liquidity.** A token may trade continuously even when the underlying asset, banking channel, market maker or redemption process does not.
- **Resilience requires more than faster technology.** It requires credible reserves, liquidity buffers, operational resilience, transparent governance, clear legal claims, robust settlement assets and coordinated supervision.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#1-what-changes-when-finance-never-closes)1\. What changes when finance never closes?

Traditional financial infrastructure operates through a sequence of institutions and time windows. A security trade may involve execution, clearing, settlement, custody, cash movement and reconciliation. Each stage can have its own operating schedule and legal framework.

Tokenisation can combine some of these functions on programmable ledgers. The [International Monetary Fund's April 2026 note](https://www.imf.org/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921) describes tokenisation as the representation of financial assets and liabilities on programmable digital ledgers. It identifies potential benefits including atomic settlement, continuous liquidity management and embedded compliance. It also warns that speed, concentration, fragmentation and changes to contract-based risk management can amplify instability without appropriate institutional and policy anchors.

The important distinction is between **continuous access** and **continuous capacity**. A platform may accept orders around the clock. That does not guarantee that a market maker can quote deep prices, that a bank can send fiat funds, that a custodian can process every instruction, or that the underlying asset can be sold immediately at a fair price.

A 24/7 market is therefore a chain of dependencies. Its resilience is determined not by the fastest component, but by the weakest critical component.

[![Diagram headed The 24/7 financial transaction chain: five linked steps, trade (orders and pricing), clear (obligations matched), settle (cash and asset change hands), custody (ownership recorded) and redeem (converted into usable money). Below: continuous access is not the same as continuous capacity](https://joviantan.com/images/insights/bank-run-transaction-chain.png)View the image full size](https://joviantan.com/images/insights/bank-run-transaction-chain.png) 

A 24/7 market is a chain of dependencies.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#2-the-digital-bank-run-is-already-real)2\. The digital bank run is already real

The idea that technology can accelerate a bank run is no longer theoretical. In March 2023, Silicon Valley Bank (SVB) experienced an extraordinary deposit outflow. [California's Department of Financial Protection and Innovation](https://dfpi.ca.gov/press_release/california-dfpi-announces-results-from-review-of-the-supervision-and-closure-of-silicon-valley-bank/) said the bank received withdrawal requests of approximately **$42 billion on 9 March 2023**, representing nearly a quarter of its deposits, within roughly eight hours.

[![Bar chart headed Silicon Valley Bank: the speed of a digital run. Total deposits of about $166 billion beside withdrawal requests of about $42 billion on 9 March 2023, made in about eight hours. Callout: nearly a quarter of deposits, about 25%. Source: California DFPI, 8 May 2023](https://joviantan.com/images/insights/bank-run-svb-withdrawals.png)View the image full size](https://joviantan.com/images/insights/bank-run-svb-withdrawals.png) 

Nearly a quarter of SVB's deposits were requested in about eight hours.

The [Federal Reserve's review](https://www.federalreserve.gov/publications/2023-April-SVB-Evolution-of-Silicon-Valley-Bank.htm) described a bank whose assets had grown rapidly, whose customer base was heavily concentrated in venture-capital-backed technology and life-sciences companies, and whose deposits were largely uninsured. SVB had invested a significant portion of deposits in longer-dated securities. As interest rates rose and customers needed cash, the bank faced the combined pressure of unrealised securities losses, concentrated withdrawals and deteriorating confidence.

The lesson is not that a mobile app caused SVB to fail. Its balance-sheet and risk-management weaknesses were fundamental. Digital banking, social networks and a highly connected depositor base helped withdrawals happen at extraordinary speed.

This distinction matters. Technology can be an accelerant, not necessarily the original fuel.

The [Federal Reserve Bank of St. Louis](https://www.stlouisfed.org/on-the-economy/2023/may/understanding-the-speed-and-size-of-bank-runs-in-historical-comparison) has also cautioned against attributing the entire speed of modern runs to technology alone. It notes that depositor concentration and social connections were important in coordinating withdrawals. The lesson for digital finance is therefore broader: when customers share information, risk exposures and exit incentives, they may act together.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#3-stablecoins-redemption-is-the-real-stress-test)3\. Stablecoins: redemption is the real stress test

A stablecoin's everyday price is not the ultimate test of its resilience. The more important test is whether holders can redeem it reliably under stress.

For a reserve-backed stablecoin, confidence depends on several linked elements: reserve quality, custody, issuer governance, legal redemption rights, banking access, operational continuity and the ability to convert tokens into usable fiat money. A token can continue moving on-chain while the off-chain redemption channel is delayed, restricted or unavailable.

A run can develop through several stages:

1. Holders question the issuer, reserve assets or access to redemption.
2. Secondary-market sellers increase and the token trades below its intended value.
3. Market makers reduce risk or withdraw, widening spreads and reducing depth.
4. Redemption requests rise, requiring the issuer or intermediaries to mobilise cash or sell assets.
5. If reserves are illiquid, concentrated or operationally inaccessible, confidence can deteriorate further.

The [Financial Stability Board's 12 October 2026 note](https://www.fsb.org/2026/10/global-stablecoin-arrangements-cross-border-vulnerabilities-and-financial-stability-monitoring/) stresses that global stablecoin arrangements operate across jurisdictions and sectors. This makes it difficult for one authority to assess the full chain of vulnerabilities. Issuance, reserve management, custody, distribution, trading and redemption may involve different entities and regulators.

The practical question is not simply, “Is the stablecoin backed?” It is: backed by what, held where, under whose control, legally available to whom, and convertible through which channels during a crisis?

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#4-tokenised-assets-settlement-can-be-instant-while-liquidity-remains-scarce)4\. Tokenised assets: settlement can be instant while liquidity remains scarce

Tokenisation can make an asset easier to transfer. It does not automatically make the underlying asset easier to sell.

Consider a token representing an interest in a property portfolio, private credit fund or infrastructure project. The token may be transferable at any hour, but the underlying property cannot be sold instantly. Private loans mature over time. Valuations may be infrequent. Transfer restrictions, investor eligibility rules and legal approvals may apply.

This creates a potential mismatch:

- **The token layer:** potentially continuous transfer and trading.
- **The asset layer:** slower valuation, limited buyers and longer liquidation periods.
- **The cash layer:** banking hours, payment cut-offs, liquidity limits and redemption conditions.

If investors expect immediate exit from an asset that can only be realised over months, a liquidity mismatch exists regardless of whether the ownership record sits on a blockchain.

[![Diagram headed The liquidity mismatch in tokenised assets, in three layers. Token layer: moves around the clock, with potentially continuous transfer and trading. Asset layer: moves more slowly, with slower valuation, limited buyers and longer liquidation periods. Cash layer: runs on banking time, with banking hours, payment cut-offs, liquidity limits and redemption terms. Below: transferability does not guarantee immediate liquidity](https://joviantan.com/images/insights/bank-run-liquidity-mismatch.png)View the image full size](https://joviantan.com/images/insights/bank-run-liquidity-mismatch.png) 

The token, the asset and the cash move at different speeds.

The IMF's October 2026 [Global Financial Stability Report](https://www.imf.org/en/Publications/GFSR/Issues/2026/10/13/Global-Financial-Stability-Report-October-2026) says tokenised asset markets remain small, and that current tokenised equity markets are less liquid, more volatile and more fragmented than traditional counterparts. It warns that as tokenisation grows, it may create new channels for leverage, liquidity and maturity mismatches, interconnectedness and technology dependencies.

This is not an argument against tokenisation. It is a reminder that market design must match the liquidity of the underlying asset.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#5-defi-liquidation-loops-when-code-turns-stress-into-action)5\. DeFi liquidation loops: when code turns stress into action

Decentralised finance introduces another mechanism: automated collateral management. Lending protocols often require borrowers to maintain collateral above specified thresholds. If collateral values fall or borrowing costs rise, smart contracts can trigger liquidations.

Automation can make risk rules transparent and reduce discretion. But it can also produce procyclical outcomes:

1. Asset prices fall.
2. Collateral values decline and health factors deteriorate.
3. Smart contracts trigger liquidations.
4. Liquidators sell collateral into a falling or thin market.
5. Selling pressure pushes prices lower, triggering further liquidations.

This is a possible feedback loop, not an inevitable outcome of every DeFi protocol. Its severity depends on collateral quality, oracle design, market depth, liquidation incentives, concentration and the ability of the system to pause or adapt during abnormal conditions.

[![Diagram headed How a liquidation spiral can form, a possible feedback loop in leveraged DeFi markets: prices fall, collateral weakens, smart contracts trigger liquidations, collateral is sold into a falling or thin market, and prices fall further, which can trigger the next round. Below: severity depends on collateral, oracles, market depth and protocol design](https://joviantan.com/images/insights/bank-run-liquidation-spiral.png)View the image full size](https://joviantan.com/images/insights/bank-run-liquidation-spiral.png) 

How automated liquidations can feed on themselves.

A key design question is whether a protocol's liquidation mechanism remains orderly when many users need to exit at once. A smart contract can execute exactly as written and still produce a destabilising result if the assumptions behind its design fail.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#6-ai-and-automated-markets-faster-reactions-correlated-behaviour)6\. AI and automated markets: faster reactions, correlated behaviour

AI-enabled systems may improve monitoring, fraud detection, pricing and treasury management. They may also create new forms of correlated behaviour if many agents respond to similar signals, use similar models or depend on common data sources.

Imagine multiple automated treasury systems detecting the same risk signal and simultaneously converting stablecoins, reducing exposures or selling tokenised assets. Each action may be rational in isolation. Together, they could drain market depth and amplify volatility.

This scenario should be treated as a risk pathway, not a claim that AI agents have already caused a systemic run. The [IMF's October 2026 report](https://www.imf.org/en/Publications/GFSR/Issues/2026/10/13/Global-Financial-Stability-Report-October-2026) warns that increasingly sophisticated cyber threats pose growing risks as finance becomes more digital and interconnected. Its analysis reinforces the importance of understanding interconnectedness, leverage and common exposures.

AI governance for finance should therefore include clear authority limits, human escalation, model validation, audit trails, kill switches, data controls and testing under stressed liquidity conditions.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#7-what-the-evidence-tells-us-three-instructive-episodes)7\. What the evidence tells us: three instructive episodes

### [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#case-study-a-silicon-valley-bank-march-2023)Case study A: Silicon Valley Bank, March 2023

SVB demonstrates how concentrated deposits, interest-rate risk, weak liquidity management and rapid loss of confidence can combine. The DFPI reported approximately $42 billion in withdrawal requests in one day. The Federal Reserve's review documents the bank's rapid growth, concentrated client base, uninsured deposits and long-duration securities exposure.

**What it teaches:** digital channels can accelerate a run, but sound asset-liability management and credible liquidity planning are the first lines of defence.

### [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#case-study-b-terrausd-and-the-may-2022-collapse)Case study B: TerraUSD and the May 2022 collapse

TerraUSD (UST) was an algorithmic stablecoin whose mechanism depended heavily on its relationship with the Luna token rather than a conventional pool of fully liquid reserve assets. [Research by Federal Reserve Board staff](https://www.federalreserve.gov/econres/feds/files/2022058pap.pdf) describes how the ecosystem collapsed in less than a week after confidence and liquidity deteriorated. It estimated roughly $60 billion in value was lost across the UST-Luna system during that week.

**What it teaches:** a mechanism that appears stable during normal conditions may fail when redemption incentives, market liquidity and confidence break down together. Algorithmic stabilisation is not equivalent to a cash reserve.

### [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#case-study-c-the-march-2020-dash-for-cash)Case study C: The March 2020 dash for cash

During the early COVID-19 market shock, investors sold assets to obtain cash. [Research from the Federal Reserve Bank of New York](https://www.newyorkfed.org/research/staff_reports/sr1010) documents broad selling pressure across sovereign bond markets and impaired market functioning, including in the US Treasury market.

**What it teaches:** even markets generally regarded as deep and liquid can become strained when many participants seek cash simultaneously. Liquidity is conditional, not permanent.

These episodes are not identical, and they should not be treated as proof that tokenisation itself causes financial crises. They illustrate recurring mechanisms: confidence shocks, liquidity mismatch, crowded exits, leverage and the limits of market depth.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#8-the-resilience-framework-what-must-be-built-before-scale)8\. The resilience framework: what must be built before scale

A credible 24/7 financial system needs safeguards across the entire transaction lifecycle.

[![Seven cards headed Seven layers of 24/7 financial resilience: asset quality (transparent, high-quality assets and realistic valuation), liquidity (stress-tested buffers and credible redemption), custody (segregation, controls, recovery and oversight), settlement (legal finality and safe settlement assets), technology (cyber resilience, redundancy and monitoring), governance (clear accountability and tested contingency powers) and regulation (cross-border cooperation and data sharing)](https://joviantan.com/images/insights/bank-run-resilience-layers.png)View the image full size](https://joviantan.com/images/insights/bank-run-resilience-layers.png) 

Seven layers a 24/7 system has to secure.

Layer

Key question

Resilience requirement

Asset quality

What supports the claim?

Transparent, high-quality assets and realistic valuation

Liquidity

Can obligations be met under stress?

Stress-tested buffers, liquidity plans and credible redemption

Custody

Who controls assets and keys?

Segregation, controls, recovery and independent oversight

Settlement

What is final and in which money?

Legal finality, safe settlement assets and clear failure handling

Technology

Can systems operate continuously?

Cyber resilience, redundancy, monitoring and incident response

Governance

Who can intervene?

Clear accountability, escalation and tested contingency powers

Regulation

Who supervises the whole chain?

Cross-border cooperation, data sharing and consistent standards

**For issuers:** publish meaningful reserve and liquidity information, define redemption rights clearly, test redemption operations and avoid maturity transformation that cannot survive stress.

**For exchanges and platforms:** distinguish trading availability from underlying liquidity, disclose suspension and settlement risks, monitor concentration and establish orderly market controls.

**For tokenisation projects:** align transferability with the legal and economic liquidity of the underlying asset. Do not market 24/7 transferability as guaranteed 24/7 redemption.

**For DeFi developers:** test liquidation cascades, oracle failures, liquidity gaps and governance interventions. Publish assumptions and make emergency mechanisms transparent.

**For institutions and investors:** assess counterparties, legal claims, reserve custody, operational dependencies and exit routes. A token's market price is not a substitute for due diligence.

**For regulators:** monitor the full arrangement, not only the token issuer. Cross-border stablecoin structures require coordination among authorities responsible for issuance, reserves, custody, payments and trading.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#9-the-regulatory-challenge-supervising-a-chain-not-a-product)9\. The regulatory challenge: supervising a chain, not a product

A stablecoin, tokenised fund or DeFi protocol may appear to be one product to a user. Operationally, it can depend on multiple legal entities, service providers, custodians, banks, blockchain networks, oracles and market makers.

That fragmentation creates a supervisory challenge. A local regulator may oversee one entity while material risks sit elsewhere in the chain. The [FSB's October 2026 monitoring note](https://www.fsb.org/2026/10/global-stablecoin-arrangements-cross-border-vulnerabilities-and-financial-stability-monitoring/) specifically highlights the cross-border and cross-sector nature of global stablecoin arrangements and the need for data to monitor potential vulnerabilities.

Regulation should be technology-neutral but not technology-blind. The relevant questions include: who owes the obligation, what law governs the claim, what happens on insolvency, how settlement finality is established, who can freeze or reverse activity, and how critical services recover after disruption.

For Malaysia and other markets integrating digital assets into mainstream finance, the practical priority is to ensure that cross-border payment and tokenisation arrangements have clear legal treatment, transparent redemption arrangements, appropriate AML/CFT controls and credible operational safeguards. This article does not assess any specific Malaysian licence or product approval.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#10-the-future-continuous-finance-needs-continuous-safeguards)10\. The future: continuous finance needs continuous safeguards

The future is unlikely to be a simple replacement of banks by blockchains. It is more likely to be a hybrid system in which banks, payment networks, stablecoin issuers, custodians, tokenisation platforms and public authorities interact.

The efficiency gains could be significant. Atomic settlement may reduce counterparty exposure. Programmable assets can automate compliance and collateral movement. Shared ledgers can reduce reconciliation. Continuous markets can improve access across time zones.

But the same architecture can concentrate dependencies, compress reaction windows and connect liquidity pools that were previously separated by operating hours and institutional boundaries.

The most important design principle is straightforward: **the ability to move an asset instantly must be matched by the ability to understand, fund, settle and govern that movement safely.**

A 24/7 market without 24/7 risk management is not a modern financial system. It is an old liquidity problem running on faster rails.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#conclusion-speed-is-an-advantage-only-when-resilience-keeps-pace)Conclusion: speed is an advantage only when resilience keeps pace

Financial innovation is moving the system towards continuous operation. That transition can make payments and capital markets more efficient, accessible and programmable. It can also expose liquidity and operational weaknesses at a speed that traditional controls were not designed to handle.

The next crisis may not look exactly like a conventional bank run. It may begin with stablecoin redemptions, a tokenised fund facing withdrawals, a DeFi liquidation cascade, a cyber incident or a coordinated response by automated systems. The common thread will be the gap between the speed of claims and the capacity to honour them.

The question is no longer whether finance can operate 24/7. It is whether trust, liquidity and accountability can operate 24/7 too.

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#frequently-asked-questions)Frequently asked questions

**Does 24/7 trading mean an asset can always be sold?** No. Trading availability does not guarantee buyers, market depth, fair pricing or redemption. The underlying asset and its cash-conversion process may operate on different schedules.

**Can stablecoins experience a bank run?** Stablecoins can face run-like redemption pressure if holders lose confidence and seek to exit simultaneously. The outcome depends on reserve quality, liquidity, legal rights, banking access and operational capacity.

**Does tokenisation make financial markets riskier?** Not automatically. Tokenisation can improve settlement and transparency. It can also introduce new dependencies and accelerate liquidity demands. The net effect depends on market design, governance and safeguards.

**How did technology affect the Silicon Valley Bank run?** Digital banking and social networks helped accelerate withdrawals, but the bank also had significant underlying vulnerabilities, including concentrated uninsured deposits and interest-rate and liquidity risk.

**Can smart contracts prevent a liquidity crisis?** Smart contracts can enforce rules and automate actions, but they cannot guarantee market liquidity or correct flawed assumptions. Poorly designed automated liquidations can amplify stress.

**What should investors check before buying a tokenised asset?** Review the legal claim, issuer, underlying asset, custody, valuation, transfer restrictions, redemption terms, liquidity, fees, governing law and insolvency treatment.

* * *

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#sources-and-further-reading)Sources and Further Reading

1. **International Monetary Fund, "Global Financial Stability Report: Resilience, Risk, and Transformation", October 2026.** Tokenised asset markets, including tokenised equities; leverage, liquidity and maturity mismatches, interconnectedness and technology dependencies; and cyber threats as a growing risk. [Read the report](https://www.imf.org/en/Publications/GFSR/Issues/2026/10/13/Global-Financial-Stability-Report-October-2026).
    
2. **Financial Stability Board, "Global Stablecoin Arrangements: Cross-border vulnerabilities and financial stability monitoring", 12 October 2026.** The cross-border and cross-sector structure of global stablecoin arrangements, and the data available to monitor them. [Read the note](https://www.fsb.org/2026/10/global-stablecoin-arrangements-cross-border-vulnerabilities-and-financial-stability-monitoring/).
    
3. **International Monetary Fund, Tobias Adrian, "Tokenized Finance", IMF Note, 2 April 2026.** The definition of tokenisation, its potential benefits and the channels through which it could amplify instability. [Read the note](https://www.imf.org/en/publications/imf-notes/issues/2026/04/01/tokenized-finance-574921).
    
4. **Board of Governors of the Federal Reserve System, "Review of the Federal Reserve's Supervision and Regulation of Silicon Valley Bank", April 2023.** SVB's rapid growth, concentrated client base, largely uninsured deposits and long-dated securities. [Read the review](https://www.federalreserve.gov/publications/2023-April-SVB-Evolution-of-Silicon-Valley-Bank.htm).
    
5. **California Department of Financial Protection and Innovation, "California DFPI Announces Results from Review of the Supervision and Closure of Silicon Valley Bank", 8 May 2023.** The approximately $42 billion in withdrawal requests within about eight hours on 9 March 2023, and the role of social media and digital banking. [Read the release](https://dfpi.ca.gov/press_release/california-dfpi-announces-results-from-review-of-the-supervision-and-closure-of-silicon-valley-bank/).
    
6. **Federal Reserve Board staff, Pablo D. Azar et al., "The Financial Stability Implications of Digital Assets", Finance and Economics Discussion Series 2022-058, July 2022.** The TerraUSD and Luna collapse in less than a week and the loss of about $60 billion of value; a staff working paper reflecting the authors' views. [Read the paper](https://www.federalreserve.gov/econres/feds/files/2022058pap.pdf).
    
7. **Federal Reserve Bank of St. Louis, Jonathan Rose, "Understanding the Speed and Size of Bank Runs in Historical Comparison", 26 May 2023.** Why connected and concentrated depositors, not technology alone, explain the speed of recent runs. [Read the article](https://www.stlouisfed.org/on-the-economy/2023/may/understanding-the-speed-and-size-of-bank-runs-in-historical-comparison).
    
8. **Federal Reserve Bank of New York, Jordan Barone et al., "The Global Dash for Cash: Why Sovereign Bond Market Functioning Varied across Jurisdictions in March 2020", Staff Report 1010, March 2022.** Selling pressure across sovereign bond markets in March 2020, most pronounced in US Treasuries. [Read the report](https://www.newyorkfed.org/research/staff_reports/sr1010).
    
9. **Bank for International Settlements, Financial Stability Institute, "Financial stability implications of tokenisation – Executive Summary", 28 August 2025.** Further reading on the benefits of tokenisation, its operational complexity, liquidity pressures and regulatory uncertainty. [Read the summary](https://www.bis.org/fsi/fsisummaries/exsum_23905.htm).
    

* * *

## [#](https://joviantan.com/insights/financial-system-24-7-bank-run-liquidity-risk#editorial-note)Editorial note

This article is for general information and education, not investment, legal, tax or regulatory advice, and it is not an offer, solicitation or recommendation to buy or sell any financial product or digital asset. Figures and regulatory positions may change. Check primary disclosures and consult qualified advisers before making decisions.

The article distinguishes documented events from potential risk scenarios. The scenarios in sections 5 and 6 are risk pathways, not predictions or claims that such events have occurred.

Sources last checked on 5 November 2026.

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About the author

[Dr. Jovian Joris Tan Chern Chian](https://joviantan.com/about), professionally known as Dr. Jovian Tan, is a Kuala Lumpur-based technology entrepreneur and the founder and Chief Technology Officer of Bitara, working across blockchain, Web3 infrastructure, AI infrastructure and digital financial infrastructure.

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