😟 keyword is stress

• svb, before its fall, was a regional bank

  • regional banks are significantly smaller and operate over a certain region or geography, usually not big enough to cover a whole nation

• regardless, small to mid-size banks play a crucial role in the economy, and the svb-induced stress may potentially have a heavy impact on the rest of the regional banks

🔢 the small-medium presence

just exactly how important are small to mid-size banks (roughly meaning regional banks) to the us economy? here are some stats:

• lenders with less than $250b in assets make up ~50% of us commercial and industrial lending

• for perspective:

  • BAC 0.00 (bank of america), the second largest commercial bank, has over $2tr(!) in domestic assets

  • svb had $200bn+ in assets and ~$175bn in assets before it collapsed

🔬 fresh research from GS 0.00

• researchers at goldman sachs expect that lending standards will tighten more

  • this is a way to manage risk, by setting more difficult standards as to who or which organization gets to borrow how much money for how long

• less money lent out may lead to less overall economic or business activity if the impact is non-negligible

  • goldman researchers now expect a ~.25% drag on this year's gdp growth

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💡 something im thinking about

the new basketball – 3d printed and full of holes (click image)

as always, i’m no financial advisor! (i’m no substitute for professional financial services)