The US economy is grappling with a triple threat of challenges, including surging inflation, high interest rates, and a banking industry in turmoil. This situation has been exacerbated since Silvergate Bank announced its decision to cease operations and liquidate assets on March 8, 2023. This decision has triggered a series of significant bank failures, including Silicon Valley Bank, Signature Bank, and First Republic Bank, marking the second, third, and fourth-largest bank failures in US history.

A recent report published on May 4, 2023, has shed some light on the ongoing issues faced by the banking sector. According to the report, executives are increasingly using the term “credit tightening” during their earnings calls. The report cites Bloomberg data, which reveals that the frequency of “credit tightening” mentions on company calls has surpassed the levels seen during the 2008 financial crisis. This trend is alarming for the banking industry, as it suggests that executives are struggling to manage credit risk and maintain profitability.

The banking industry is showing signs of caution, as evidenced by the increasing mentions of “credit tightening” on company calls. This trend is concerning as it can have a negative impact on the economy. When banks become more cautious about lending money, it becomes harder for market participants to obtain credit, which can slow down economic growth. Additionally, the report notes that news stories alluding to “credit tightening” have reached record highs.

On March 19, 2023, Bitcoin.com reported that Google Trends data revealed a trend in search queries related to the banking industry. Searches for terms like “banking crisis” and “bank runs” had skyrocketed at the time. Current 30-day statistics show that the search query “bank crisis” reached a score of 89 out of 100 on April 6, and a perfect score of 100 on April 18. By the end of April, the score had dropped to 68 out of 100. Similarly, the search query “bank failure” hit a score of 78 on April 26, and a perfect score of 100 on April 28. The topic of the banking crisis has gained significant traction in several states, including Maine, Vermont, Massachusetts, Nebraska, and Arizona. Meanwhile, the issue of bank failures has piqued the interest of people in Alaska, West Virginia, Delaware, Maine, and Montana.

According to Google Trends, related topics and associated queries include the US government and First Republic Bank. Another trending search query is “credit tightening,” which reached a perfect score of 100 on April 6 and a score of 62 on April 21. This topic is particularly popular in California, Florida, and New York.

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