Japanese Finance Minister Shunichi Suzuki speaks during a press conference after the meeting of G7 Finance Ministers and Central Bank Governors on the sidelines of G-20 financial conclave on the outskirts of Bengaluru, India, on Feb 23, 2023. (PHOTO / AP)

TOKYO - Finance leaders of the Group of Seven (G7) advanced economies will discuss this week ways to strengthen the global financial system, Japanese Finance Minister Shunichi Suzuki said on Tuesday, as recent US bank failures shed light on the heightening risk of digital bank runs.

The Nikkei newspaper reported on Tuesday the G7 finance leaders will discuss setting up individual emergency plans in case they face digital bank runs

"The environment surrounding finance has changed dramatically with the emergence of social media and the Internet," said Suzuki, who will chair the G7 finance leaders' gathering to be held in the Japanese city of Niigata on May 11-13.

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"Responding to such changes have become a common challenge for countries across the world, including Japan," he said, adding that the topic will be among many issues to be discussed at this week's G7 meeting.

The recent collapse of First Republic Bank has exacerbated investor worries about the US banking sector, and raised calls for better global oversight by regulators to new risks such as digital bank runs.

The Nikkei newspaper reported on Tuesday the G7 finance leaders will discuss setting up individual emergency plans in case they face digital bank runs.

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US Treasury Secretary Janet Yellen, who will travel to Japan, will tell her G7 counterparts that the US banking system remains sound, a senior Treasury official said on Friday.