THE CRISIS in small and mid-sized banks in the United States after the swift downfall of SVB Financial Group SIVB.O could further slow down the struggling economy and raises the probability of a recession this year, according to Wall Street analysts.
J.P.Morgan said the slower loan growth at mid-size banks could trim a half to one percentage point off the level of gross domestic product or GDP over the next year or more. Goldman Sachs raised its probability of the US economy entering a recession in the next 12 months by 10 percentage points to 35%, citing the stress on the small banks. — Reuters