Key Points
The Credit Suisse and SVB banking issues are causing some nervousness in the market, as the consequences of a lack of lending to small and medium businesses could have a domino effect on the global financial market..
Regional banks play a very important role in the SME lending of the US, and if all those companies are to see a credit crunch, the recession that the US, the Fed wanted, is probably going to happen in an unruly way..
So the recession that the US, the Fed wanted, is probably going to happen in an unruly way if they cannot get the regional banks to lend to the small and medium businesses across the country..
And now with the crude having corrected, the input costs for this pet coke or coal and other petroleum-related raw materials all have come down by 30%, 40%, 50% depending on the raw material..
Banks are beginning to look very attractive but we are still waiting because if the economy slows down even further which means credit growth in India is likely to come down..
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