The run on deposits at SVB was fueled by social media and the concentrated network of venture capital investors and technology firms that withdrew their deposits in a coordinated manner with unprecedented speed. It seems that the HKMA has been doing some interesting work on how social media may impact liquidity and it will be interesting to see how this develops.

Gen AI is receiving a lot of attention in Hong Kong and Singapore although its use at the moment is limited. Some banks are, however, exploring or piloting Gen AI applications internally to improve operational efficiency and staff productivity. Arguably, Asia is moving forward more quickly than compared to the United States where many banks have adopted AI tools but the White House's executive order on AI and comments from regulatory authorities as regards compliance risks have raised some…