STOCKHOLM: Recent turmoil in the banking sector barely affected European Union lenders but there remains an urgent need to make the sector even more resilient given how fast social media-created runs can sink banks, top EU officials said on Friday.

EU finance ministers were briefed by heads of the EU’s Single Supervisory Mechanism and the Single Resolution Board on lessons that could be drawn from the collapse of US lenders Silicon Valley Bank and Signature Bank, and the forced takeover of Credit Suisse by UBS in the bloc’s neighbour Switzerland.

“The speed with which recent events in the financial sector have unfolded is a key theme that emerged from our discussion today,” Paschal Donohoe, chair of the ministers said after they met for regular talks outside Stockholm.

He stressed that EU banks were resilient and stabile thanks to rules the EU put in place since the banking crisis in 2008, but told a news conference: “Recent events have reminded us of the work that we still need to do.” In March, depositors fled Silicon Valley Bank (SIVB.O), withdrawing $42 billion in 24 hours, some via their mobile phones. Information about the bank’s difficulties spread fast online, creating a social media-driven bank run.

“The fact is that with social media today, when there are risks, or withdrawals of deposits, it goes much faster than in the past,” the head of the euro zone’s ESM bailout fund Pierre Gramegna told the news conference.

Officials said the bank turbulence added urgency to discussions of a European Commission proposal to broaden the EU’s bank resolution framework, now applied to just over 100 of the biggest European banks, to smaller and medium-sized lenders.

The proposal, called Crisis Management and Deposit Insurance (CMDI) was requested by EU finance ministers in mid-2022. It would ensure that the resolution of smaller banks could be paid for from the EU’s resolution fund, financed by banks, rather than by taxpayers.

It would also provide money for winding down failing lenders from national deposit insurance schemes which are also financed by banks, and guarantee deposits of up to 100,000 euros not only for individuals, as now, but also for companies and other institutions.