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Why the banking crisis still has room to run
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fnlondon.comThe panic phase of the past month’s banking crisis may be ending. The big question now is how much of a hit the economy faces from any lending pullback. The answer may not be clear for months.
The failures of Silicon Valley Bank and Signature Bank one month ago disrupted an already fragile equilibrium because many banks hadn’t raised deposit rates as the Federal Reserve aggressively lifted short-term interest rates to fight high inflation.
Depositor...
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