The collapse of Silicon Valley Bank SVB was the biggest US banking failure since the 2008 financial crisis, and left depositors struggling to get their money out.
The episode has caused heated debate in the US about whether SVB was subject to appropriate supervision and if officials responded properly to its collapse.
Financial regulators called the failure a textbook case of mismanagement, blamed SVB leaders for failing to adjust strategies after interest rates went up last year despite warnings from officials.
The speed of the SVB collapse took them by surprise and may mean that banking rules may need updating, according to MPs.
He twice suggested to the MPs that the stress tests applied to UK banks to make sure they can withstand a crisis would need to be looked at, because the new technology meant deposits could be withdrawn electronically in a matter of seconds.
Mr Bailey told MPs he did not think the UK was in a similar position to the 2008 global financial crisis, when banks stopped lending to each other, plunging the world into a deep recession.
He said that while rising interest rates were an issue for US banks, they were less likely to affect UK lenders because they were regulated differently.
Michael Gruenberg, head of the Federal Deposit Insurance Corp, said the SVB saga had shown the increased risk of bank runs at a time when money can flow out of institutions with incredible speed in response to news amplified through social media channels.