General World News

Bank failures may be the catalyst for an economic recession 

Fannie Mae has projected that the recent bank failures may act as the catalyst that tips an already precarious economy into a recession — primarily due to the combination of tighter lending standards by small- and mid-sized regional banks.

The ongoing banking instability may affect the availability of jumbo mortgages and residential construction loans due to the high concentration of those originations stemming from small and mid-sized banks, Fannie Mae’s Economic and Strategic Research (ESR) Group said.

“Inflation has now been joined by financial stability concerns as threats to sustained growth,” Doug Duncan, senior vice president and chief details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com