Banking trouble ahead?

Bank trouble is one of the most obvious areas where markets and macro intersect — a healthy banking system is a necessary precondition for a healthy economy 

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Small business obstacles.
Welcome to the Know the Difference Minute for Wednesday, April 26th.
Following the collapse of Silicon Valley Bank and Signature Bank, some lenders – particularly small and midsize banks serving small businesses -- may be forced to tighten credit further. Between outflows of deposits to the need to retain capital, banks are exercising more caution. And credit crunches affect small businesses more than larger ones because smaller businesses have fewer levers to pull to arrange financing.
Approval rates of small business loan requests at big banks have fallen for 9 consecutive months; approving under 15% of applications. Small bank approvals are around 20%, but in 2020, nearly half of loans were approved.
Bank trouble is one of the most obvious areas where markets and macro intersect — a healthy banking system is a necessary precondition for a healthy economy. Keep an eye on this one.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.