Recession Fears Soar as Credit Suisse Woes Threaten Loan Crunch
- Lenders seen skimping on credit amid growing financial strain
- Risk of hard landing rise even with Fed hikes set to slow
The Credit Suisse Group AG headquarters in Zurich.
Photographer: Francesca Volpi/BloombergThis article is for subscribers only.
An escalating crisis of confidence in Credit Suisse Group AG, a giant lender deeply enmeshed in the global financial system, is raising the risk of a bank-lending crunch that could tip economies into recession.
Coming days after the failure of three US banks, the latest bout of market turmoil threatens to rewrite the global outlook. The risk is that lenders will now be far more concerned with shoring up their own finances than providing the loans that enable economies to grow — even without a system-threatening bank collapse.