ICG economic and investment research: ‘Banking turmoil’

Federal Reserve Bank
Following the turmoil in the US banking sector and emergency take-over of Credit Suisse by UBS, in this report our manager ICG's head of economic and investment research Nick Brooks assesses what it means for the growth outlook, interest rates, sector performance and private markets


  • Banking turmoil likely to weigh on growth
  • But systemic financial crisis is unlikely
  • Banking sector consolidation and tighter credit conditions ahead
  • Operating environment for companies to become more difficult
  • China opening, lower energy prices, swifter rate cuts to provide positive offsets
  • Sector and company performance differentiation to remain wide, bringing opportunity for longer-term bottom-up investors
  • The less cyclical sectors private investors tend to be exposed continue to outperform
  • Private capital to play increasingly important role filling the funding gap

US Regional banks under pressure

Source: Bloomberg, April 2023

Full report