© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, March 15, 2023. REUTERS/Andrew Kelly

(Reuters) – The crisis in small and mid-sized banks in the United States after the swift downfall of SVB Financial Group could further slow down the struggling economy and raises the probability of a recession this year, according to Wall Street analysts.

JPMorgan said the slower loan growth at mid-size banks could trim a half to one percentage point off the level of GDP over the next year or more.

Goldman Sachs (NYSE: ) raised its probability of the US economy entering a recession in the next 12 months by 10 percentage points to 35%, citing the stress on the small banks.

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