A Recession Would Be Different for Banks This Time: Conor Sen

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 crisisof 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, ...