29 min listen
The Huge Significance of Small Banks
FromWhat Goes Up
ratings:
Length:
40 minutes
Released:
Mar 17, 2023
Format:
Podcast episode
Description
Torsten Slok had been firmly in the “no landing” camp of economists. More positive than a “soft landing,” its adherents say the Federal Reserve will tame inflation without triggering a recession at all. But for Slok, chief economist of Apollo Global Management, that all changed with the failure of Silicon Valley Bank. Now he’s bracing for a “hard landing.”
Slok joined the What Goes Up podcast to discuss the sizeable role regional banks play in the US economy, and the reasons why SVB’s collapse changed his outlook. A big reason is how regional banks may now change their behavior.“Regional banks make up 30% of assets and roughly 40% of all lending,” he explains. That big chunk of the US banking sector is now looking at what happened to SVB and worrying what comes next. With a slowdown potentially underway thanks to the central bank’s rate hikes, Slok warns a reluctance to lend by SVB’s mid-size brethren might mean it comes “faster simply because of this banking situation.”See omnystudio.com/listener for privacy information.
Slok joined the What Goes Up podcast to discuss the sizeable role regional banks play in the US economy, and the reasons why SVB’s collapse changed his outlook. A big reason is how regional banks may now change their behavior.“Regional banks make up 30% of assets and roughly 40% of all lending,” he explains. That big chunk of the US banking sector is now looking at what happened to SVB and worrying what comes next. With a slowdown potentially underway thanks to the central bank’s rate hikes, Slok warns a reluctance to lend by SVB’s mid-size brethren might mean it comes “faster simply because of this banking situation.”See omnystudio.com/listener for privacy information.
Released:
Mar 17, 2023
Format:
Podcast episode
Titles in the series (100)
It’s a Tech War Now by What Goes Up