A Recession Really Would Be Different for Banks This Time
Lenders mostly made the economic calamities of the recent past worse, but are now in a position of relative strength as a downturn looms.
The banking industry has come a long way in just a few years.
Photographer: Justin Sullivan/Getty Images
As markets struggle with the volatility and uncertainty created by the new tariff environment, one industry that's used to being at the center of economic crises seems relatively insulated for now: US banks. That's not because of any proactive moves by bankers in anticipation of tariffs, but rather some unintentional good fortune.
Lenders have spent the last two years strengthening and repositioning their balance sheets following the mini banking crisis of early 2023 that saw the collapse of Silicon Valley Bank, Signature Bank and a few other financial institutions. And while the industry won’t be immune from an economic downturn, it’s become evident that there are ways in which it stands to benefit.