SVB collapse could deter smaller banks from lending, warns expert

‘The majority of SME businesses get their loans from these regional banks,’ notes Seema Hingorani of Morgan Stanley Investment Management

Seema Hingorani, managing director, Morgan Stanley Investment Management: ‘The Fed doesn’t want to cause a situation where other banks are too afraid to lend.’ Picture: Maura Hickey

The head of Morgan Stanley’s investment management arm has said she does not believe there are structural problems in the US banking system, but warned that the fear created by the collapse of Silicon Valley Bank (SVB) could deter smaller banks from lending.

Speaking to the Business Post last week, Seema Hingorani, managing director at Morgan Stanley Investment Management, said that post-crash reforms of the banking system did not focus on regional banks such as ...